Tax-Free Savings Account

The Tax-Free Savings Account (TFSA), launched by the Federal Government on January 1, 2009, offers an array of tax benefits to help you invest throughout your life. It's been described as the single most important personal investment vehicle since the introduction of Registered Retirement Savings Plans (RRSP) back in 1957.

Flexible Investment and Tax Treatment

Like an RRSP, qualifying investments for your TFSA include: cash, GICs, mutual funds, publicly traded securities, government and corporate bonds. Contributions to a TFSA are not deductible for tax purposes, however, interest and investment income (including capital gains) earned in a TFSA is not taxable even when withdrawn.

Talk to your Raymond James Financial Advisor

Raymond James offers a variety of investment options for your TFSA. Your Raymond James Advisor can help you complete your application and determine the appropriate investment options based on your needs.

Tax-Free Savings Account Highlights

  • Starting in 2009, TFSA accounts were available to Canadian residents age 18 (in most provinces) or older. Up to $5,000 annually could be contributed, with unused room being carried forward.
  • The annual contribution limit increased to $5,500 in January 2013, and again to $10,000 in 2015. Effective January 1, 2016, the annual contribution limit is back to $5,500.
  • Contributions are not deductible for tax purposes.
  • Capital gains and other investment income earned in a TFSA in general will not be taxed.
  • Withdrawals are tax-free.
  • Neither income earned within a TFSA nor withdrawals from it will affect eligibility for federal income-tested benefits and credits such as OAS.
  • Withdrawals will create contribution room for future savings. However, re-contributing in the same year may result in an over-contribution amount which would be subject to a penalty tax.
  • TFSA assets are transferable to the TFSA of a spouse or common-law partner upon death.
  • Qualified investments include all arm's-length RRSP qualified investments.

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TFSA Q&A