Watch Your Investments Grow, Tax Free.
Tax Free Savings Accounts (TFSA'S)
Introduced in 2009, the Tax Free Savings Account is a flexible, general purpose savings vehicle available to Canadian residents 18 years and older wanting to save for the future. The TFSAs’ flexible structure allows the holder to be able to withdraw money from the account at any time, free of taxes. Contributions into the account are not tax deductible; however this represents a lucrative opportunity for individuals with left-over income to invest in a savings vehicle, without the pressure of time constraints.
The account also alleviates the burden of the capital gains tax. The interest-income will be able to compound tax-free. In essence, the account-holder can withdraw any amount out of the TFSA account, free from capital gains, dividend or interest taxation. Any unused TFSA contribution room under the annual prescribed maximum can be carried forward to subsequent years. The TFSA also allows income splitting to an extent, because a higher-earning spouse can contribute to the TFSA of a lower-earning spouse.Tax Free Savings Accounts are a great complement to existing registered savings plans like the Registered Retirement Savings Plan (RRSP) and the Registered Education Savings Plan (RESP).
Consider:
1) Get started by opening a Tax Free Savings Account2) Are you maximizing your tax free growth? Get a review of your existing TFSA
3) How does your TFSA integrate into your financial plan?
3) How does your TFSA integrate into your financial plan?
