Tax Free Savings Account
A Tax Free Savings Account is a relatively simple investment structure that allows you to contribute up to $5,500 per year into a tax-sheltered account. Unlike withdrawals from an RRSP, withdrawals from a TFSA are not taxable.
The main benefits of setting up a TFSA are:
- It shelters your investment gains and investment income from tax.
- Assets can be held in cash, stocks, mutual funds and other types of investments
- Cash can be withdrawn at any time without losing contribution room
In order to set up a TFSA, you must be over the age of 18 and a Canadian Resident.
To discuss how a TFSA can fit into your overall financial plan, please contact us.