What is a TFSA?
A TFSA is a registered account to which you can contribute a given amount every year. It’s a great way to help you save for almost anything. You can use it to save for big-ticket items, a down payment, tuition or retirement. Think of it as a powerful, all-purpose savings tool.
Benefits of a TFSA
Tax-free growth and withdrawals
With a TFSA, every dollar in your account grows tax-free. You won’t pay taxes on gains, dividends or interest earned. And you won’t pay taxes when you make withdrawals, helping you save just a little bit faster. Learn how else a TFSA can help you reach your savings goals.
Unlimited carry-over
The Canada Revenue Agency (CRA) sets an annual contribution limit for TFSAs. If you have unused contribution room, it carries forward from year to year. The best way to find out how much you can contribute for the current year is to check your Notice of Assessment from the CRA. Learn more about TFSA contributions and withdrawals.
Contribute for as long as you want
Unlike a Registered Retirement Savings Plan (RRSP), there’s no age limit when it comes to making contributions. You can open a TFSA when you’ve reached the age of majority in the province where the account is set up. And you can continue contributing well into your golden years. Read about the differences between a TFSA and an RRSP.
A TFSA can hold cash savings, as well as income-generating investment products. The type of investment products you choose depends on your risk tolerance and reasons for investing.
Explore our investment products:
Segregated funds
Mutual funds
You can add money throughout the year or make a lump sum contribution. The deadline to contribute is December 31, however, you can carry forward any unused contribution room from previous years. The annual TFSA contribution limit for 2024 is $7,000.
If you’re a newcomer to Canada, your contribution room starts accruing the year you become a resident.
While you can take money out of your TFSA for any reason, the timing depends on the type of investments in your account. Connect with a financial representative to learn more.
Here are a few other things to keep in mind:
- Withdrawals are tax-free
- Taking money out of your account won’t reduce benefits or credits you’re eligible to receive from the government
- Withdrawals are added back to your unused contribution room. But you must wait until the following year to re-contribute these amounts
Find out how quickly your TFSA savings can add up.
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