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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


  • 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 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.

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