TFSA
Build Wealth, Tax-Free! TFSA Solutions for Every Milestone.
A Tax-Free Savings Account (TFSA) is a flexible, all-purpose savings account for Canadians 18 or older, offering tax-free growth and withdrawals.
Key Benefits:
- Tax-Free Growth: All investment income earned inside a TFSA is tax-free, and withdrawals are also tax-free.
- Flexible Withdrawals: You can withdraw funds at any time, for any purpose, without penalty or tax. Withdrawn amounts are added back to your contribution room the following year.
- Contribution Limits: The 2025 annual limit is $7,000, plus any unused room from previous years. Over-contributions are penalized at 1% per month.
- No Impact on Benefits: TFSA withdrawals and income do not affect eligibility for federal income-tested benefits or credits.
- Wide Investment Options: TFSAs can hold cash, GICs, mutual funds, stocks, bonds, and more.
- No Tax Deduction: Contributions are not tax-deductible.
TFSAs are a strategic tool for both short- and long-term savings goals, offering tax-free growth, flexible access, and no impact on government benefits—making them essential for anyone focused on maximizing financial milestones.
Frequently asked questions (FAQ)
The 2025 annual TFSA limit is $7,000. If you’ve never contributed and were 18 or older in 2009, your total contribution room could be as high as $102,000, including all previous years’ limits and any unused room.
Over-contributions are penalized at 1% per month on the excess amount until it’s withdrawn or new contribution room becomes available.
Yes, you can withdraw funds tax-free at any time. Any amount you withdraw is added back to your contribution room the following year, allowing you to recontribute without penalty.
Yes, you can name a beneficiary (or a successor holder for spouses) on your TFSA. This allows the account to bypass probate, ensuring your savings transfer quickly and tax-free to your chosen person, which can simplify estate planning and provide peace of mind.
No, TFSA withdrawals and income do not impact your eligibility for federal income-tested benefits or credits, making it ideal for all income levels.
Yes, as soon as you are a Canadian resident, 18 or older (or age of majority in your province), and have a valid SIN, you can open a TFSA—even before you have employment income.
