The Canada Life Assurance Company  | 
  Home       Products       Corporate Information       In the Community       Online Services  
 

Tax-Free Savings Account

Heralded as the single most important personal savings vehicle since the introduction of the registered retirement savings plan (RRSP), the tax-free savings account (TFSA) allows you to earn tax-free investment income from eligible investment vehicles like segregated fund policies.

At a Glance

  • The maximum annual contribution limit is determined by Canada Revenue Agency each year. The annual contribution limit started at $5,000 in 2009 when the TFSA was first introduced. This amount is indexed to inflation and rounded to the nearest $500 on a yearly basis. Check the Canada Revenue Agency website for this year’s annual contribution limit.
  • Any unused contribution room is carried forward indefinitely
  • TFSA contributions are not tax deductible
  • Income, losses and capital gains from the TFSA are not included in taxable income

Eligibility

  • Canadian residents ages 18 and older with a social insurance number
  • You can have more than one TFSA, but the maximum allowable contribution amount applies to the total of all TFSA policies held
  • Similar to other registered accounts, such as RRSPs, but spousal TFSAs are not allowed

Withdrawals

  • Withdrawals increase contribution room in the following year
  • Do not affect eligibility for federal income-tested benefits and credits such as Canada child tax benefit, working income tax benefit, goods and services tax (GST) credit and old age security benefits
  • Not included in taxable income
  • Withdrawals from the TFSA are not taxable
  • Any time and for any purpose

Our segregated fund policies offer options to help you achieve your savings goals.

We’re Here to Help

Need an Advisor?

Find out more about our products and services. Contact a regional marketing centre near you.

Already a Client?

If you already have one of the products or services we offer and you need help, go to Client Services.

Related Content

Tools

Ask Your Advisor About