TFSA – Tax-Free Savings Account
After an RRSP, the TFSA is, without question, the most advantageous investment vehicle created by the Canadian government to encourage personal savings. More flexible than an RRSP, it allows you to put money aside on a tax-free basis for a project (car, house, vacation…) to be used whenever you wish.
Characteristics and advantages of a TFSA:
Characteristics and advantages
- You can contribute up to the annual limit regardless of your income. The limit for 2018 is $5,500 and will be indexed thereafter based on inflation. Furthermore, you may carry forward any unused contribution room.
- Your savings grow tax-free because your contributions and any earnings generated are not taxable.
- You can put funds aside tax-free, such as an inheritance, a donation or investment income.
- You may withdraw any amount at any time without penalty.
- You can still save for your retirement even if you have reached your maximum contribution limit for your RRSP.
| Contribution year | Contribution fee | Total |
|---|---|---|
| 2009 | $5,000 | $5,000 |
| 2010 | $5,000 | $10,000 |
| 2011 | $5,000 | $15,000 |
| 2012 | $5,000 | $20,000 |
| 2013 | $5,500 | $25,500 |
| 2014 | $5,500 | $31,000 |
| 2015 | $10,000 | $41,000 |
| 2016 | $5,500 | $46,500 |
| 2017 | $5,500 | $52,000 |
| 2018 | $5,500 | $57,500 |
Why choose a TFSA with us?
Why choose a TFSA with us?
Our IAG Savings and Retirement Plan allows you to invest wisely in your TFSA. It is designed for all types of investors, from those who like to play it safe to those who like to take risks. Furthermore, it offers you the choice of the following investment funds:
- Segregated funds
- Guaranteed interest funds
- Daily interest funds
- Mutual funds
Thanks to our segregated funds, we offer exceptional investment protection if the markets go down.
You can also invest your TFSA in securities.
High-Performance TFSA
We offer a savings account with an interest rate of 1.25%. This way, you enjoy all the tax advantages of a TFSA and benefit from an attractive interest rate without having to worry about your investments. Contact a financial advisor to find out more about our High-Performance TFSA.
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| Eligibility age | Age limit to contribute | Contribution ceiling | Tax-deductible contributions | Tax-sheltered accumulation | Tax payable upon withdrawal or at the end of the year | Unused contributions can be carried forward | |
|---|---|---|---|---|---|---|---|
| RRSP | 18 | 71 | |||||
| TFSA | 18 | None | |||||
| Non-Registered Savings Plan | 18 | 90 | Does not apply |