Individuals & Families

Tax Free Savings Account (TFSA)

Why your Net Income? Because unlike an RRSP, with a Tax Free Savings Account (TFSA), you don't pay tax on the amount that you have invested -- or any growth in your investments over the years.

The TFSA has been available to Canadians since 2009.

How it works:

• You have to be 18 or older
• If you've never contributed to a Tax Free Savings Account, you will have up to $63,500 (2019) in unused contribution room that you can contribute. (It's currently $5,500 per year but has been as high as $10,000 per year in the past.) And it carries forward if you don't use it.
• You don't get a tax deduction (like you do with an RRSP) but you don't pay tax when you withdraw from the plan.

Some key features:

• The TFSA allows for lifetime contributions with no requirements to withdraw at a certain age. This is different from an RRSP, which has a maximum age of 71. Contributions can be made monthly or lump sum throughout the year.
• Any unused contribution room will carry forward indefinitely. Any amounts an individual withdraws from a TFSA in a given year will be added to his or her TFSA contribution room for the following year.
• The TFSA is a great addition to other registered savings options (ie: RRSP, RESP). They will be particularly attractive to members of any existing pension plan. , because the increasing pension adjustment each year continually erodes personal RRSP contribution limits for pension plan members.
  

Mutual Funds are distributed through Desjardins Financial Security Investments Inc. (DFS Investments)