Becoming a Member
Who should get this registered savings plan?
Savers age 18 and over who want to set aside up to $5,000 a year, tax-free. Because it complements other registered savings plans (RRSPs for retirement, RESPs for children's education, etc.), the TFSA is the perfect tool to help you:
- save up for important projects
- cover unexpected expenses
- get tax-free investment income
Compare TFSAs and RRSPs.
Features
| Contribution limit |
Includes:
- Maximum annual contribution ($5,000 per year since 2009; then, indexed to the inflation rate and rounded to the nearest $500 on a yearly basis).
- Any unused contribution room carried over from the previous year.
- Any amounts withdrawn from the TFSA during the previous year.
- Excess contributions are subject to a tax of 1% per month1.
|
| Income taxation |
- Income generated is not taxable (interest, dividends and capital gains).
- Contributions to the account, capital losses and interest on amounts borrowed to invest in the account are not deductible for tax purposes.
|
| Full or partial withdrawal |
Qualifying amounts withdrawn1 are not taxable and will generate new contribution room for the following year. |
| Other |
In Ontario, Canadian dollar deposits are insured up to $100,000 by the Deposit Insurance Corporation of Ontario. |
Call your branch advisor to open a TFSA.
1. Following changes recommended by Finance Canada, withdrawals of overcontributions, non-qualified investments and amounts attributable to swap transactions, or of any related investment income, do not create additional TFSA contribution room. Some of this income will be taxed at 100%.
