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Tax-Free Savings Account (TFSA)
The Federal Government has introduced a new registered savings account that allows taxpayers to earn investment income tax-free. TFSA allows taxpayers to set money aside in eligible investment vehicles and watch those savings grow tax-free throughout their lifetime.
How the TFSA works:
- All Canadian residents 18 years or older that have a Social Insurance Number are eligible
- $5,000 is the maximum contribution for 2009. After 2009, the $5,000 maximum contribution limit may be increased depending on the rate of inflation. The limit will increase some years but not every year.
- You can withdraw funds at any time and for any purpose; withdrawals may be restricted by investment terms.
- Any amount withdrawn will be added back to your contribution limit for the following year.
- Unused contribution room may be carried forward indefinitely.
- Money earned or withdrawn is non taxable. This means that all interest, dividends or capital gains earned are tax-free.
- Contributions are not tax deductible.
- Funds withdrawn will not affect federal income-tested benefits or credits..
- TFSA assets can be transferred to a spouse upon death of the Holder.
Tax Free Savings Account
Tax Free Savings Account Select GIC
- 5 year term
- Minimum deposit $1000
- Interest paid annually
- Redeemable on each anniversary
- View current rates
Non-Redeemable TFSA
- 1 to 5 year terms with auto renew at rates in effect at the time of renewal
- $1,000.00 minimum investment
- Fixed rate
- Interest rate determined by market
- View current rates
For more information on the Tax-Free Savings Account contact any of our Investment Advisors.
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