Tax-Free Savings in Canada

This year, new changes came to Tax-Free Savings Accounts (TFSA) in Canada! A TFSA is an account available to any Canadian over the age of 18, allowing you to save tax-free!

Below is the most important information you need to know about TFSA’s.

CONTRIBUTIONS

• Can be made by any resident 18 or older
• Maximum $10000 total contributions per year
• Gifts may be contributed as long as it doesn’t surpass the $10000 limit
• Unused room is carried forward
  • If you only contribute $4000 on year, the remaining $6000 is available space for you to contribute more in the future
• Not tax-deductible

WITHDRAWLS

• Not taxed
• Amount you take out is available room to contribute next year

BENEFITS

• No tax on any interest or income!

DRAWBACKS

• If you experience a capital gain you will be taxed
• If you experience a capital loss you are not permitted to file a claim.

To find out more about your TFSA options, chat with us at AC Lending Group!