TAX-FREE
SAVINGS ACCOUNT (TFSA)

To open an TFSA account, simply talk to an advisor or a financial security advisor.

• If you already have an advisor, contact him or her about your project. Their contact information can be found in My Client Space as needed.
• If you do not have an advisor, you can find one now via the Find an Advisor page.

Your advisor can open your TFSA account after analyzing your financial needs. He or she will also advise you on the investment products for your RRSP.

Since 2009, anyone age 18 years of age and over is entitled to deposit in their TFSA a maximum amount which may vary from year to year. Contribution room which has not been used in one calendar year is deferred to be added to the maximum eligible amount.

Here are the contribution ceilings for previous years:

• 2009 to 2012: $5,000
• 2013 and 2014: $5,500
• 2015: $10,000
• 2016 to 2018: $5,500
• 2019 to 2022: $6,000
• 2023: $6,500
• 2024: $7,000

For example, the accumulated room for a person who has never had a TFSA and who was at least 18 years of age in 2009 would amount to $95,000 in 2024.

The contribution room of a person who was 18 years of age after 2009 accumulates from the year in which this person reached legal age.

In addition, the amounts withdrawn from a TFSA account in a calendar year can be contributed again in a future year.

Yes. As long as the excess contribution remains in the account, a tax equivalent to 1% of the surplus, for each applicable month, must be paid to the Canada Revenue Agency (CRA).

If you exceed the eligible limit, you will have to pay this tax until you withdraw the surplus or until you have the contribution room to keep it.

The minimum age for contributing to a TFSA is 18 years.

There are exceptions in certain provinces and certain territories where the legal age to sign a contract, and consequently to open a TFSA, is 19 years. In these regions, a person aged 18 years can still accumulate contribution room which can be subsequently used.

Unlike an RRSP, there is no maximum age for contributing to a TFSA.

No. The contributions to a TFSA can save you taxes on the gains realized in the account, but unlike contributions to an RRSP, they are not tax deductible.

No. Contrary to the RRSP, withdrawals from a TFSA account are not taxable, just like the investment income earned in the account.

Contrary to the RRSP, there is no tax benefit to contributing to your spouse’s TFSA. However, you can give an amount to any member of your family so that they contribute to their own TFSA, as long as the person is over 18 years of age.

No. Even if the TFSA is often used in view of retirement, it is not a retirement plan strictly speaking, and therefore it is not part of the family patrimony (RRSP, primary residence, furniture).

Consequently, a breakup between spouses or married people does not necessarily force them to divide the amounts in a TFSA, unless specified by your matrimonial regime or a contract.

Yes. Any person aged at least 18 years (or 19 years in certain regions) residing in Canada and having a valid social insurance number (SIN) can contribute to a TFSA. Contribution room is generated as soon as the year of arrival.

No. You cannot contribute to your TFSA or accumulate contribution room during the years where you are not a resident. However, you can keep the money already accumulated in your TFSA if you have one. In this case, your investment income and withdrawals will continue to be tax free.