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TFSA -Tax Free Savings Account

Created in 2009, TFSA, a special savings vehicle introduced by the Government of Canada, is considered a unique way to accumulate savings and earn tax-free investment income. You can use your TFSA account to save for any goal you have in life in the future whether it is for your retirement, for your wedding, for buying your first home and etc. Canadian reached to the age of majority in your province, have a valid SIN and have paid tax will be eligible to have a TFSA account and can start contributing to it. As of January 2020, annually, you can contribute $6000 in your TFSA plus any un-used contribution amount you may have accumulated over the years.

Benefits of TFSA :

There is no tax on the income earned from qualified investments (interest, dividends, or capital gains).
Unlike RRSP, you will not close it at the age 71 so you can keep you TFSA for as many years as you like.
Your un-used TFSA contribution room can be carried forward indefinitely.
There is no income requirement. You can either contribute money from your spouse or you can contribute from the RRIF withdrawals in a TFSA.
There is no tax on withdrawals and depending on the terms of your investments, you can have flexible access to your funds.
Income earned and withdrawals, since not counted as income, do not affect eligibility for Federal benefits or tax credits such as Old Age Security (OAS).
Upon your death, TFSA can be transferred to your spouse without affecting your spouse’s contribution room.
To avoid the probate and estate settlement cost and delays, a beneficiary can be named on almost all TFSA accounts (except in Quebec for GIC or Mutual Funds TFSAs).

Due to the great variety of conditions and facilities in preparing and using any kinds of insurance, it is recommended that you consult with one of our insurance advisors before making any decision. Our expert team at Forever Insure is always ready to provide the right consultation to you and thus help you make the right choice.

For more information, please contact one of our advisors at Forever Insure for a free consultation.
  • 647-518-1390
  • info@foreverinsure.ca

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