Tax Free Savings Account (TFSA)

Tax Free Savings Account (TFSA)

2017 Contribution amount to a Tax Free Savings Account (TFSA) = $5,500 and the new LIFETIME contribution total is now $52,000.

TFSA Facts:

  • A Tax-Free Savings Account (TFSA) is an account that grows tax free. Investment income earned in a TFSA, including interest, capital gains and dividends, is not taxed, even when withdrawn.
  • All Canadian residents age 18 and older with a Social Insurance Number can open a TFSA.
  • No annual income minimum or maximum is required to invest into a TFSA plan, as long as you do not exceed the lifetime contribution total.
  • You can have more than one TFSA plan.
  • While it is called a “savings” account you can open a Self-Directed TFSA and invest in Stock, Bonds, Mutual Funds, GICs and Savings Accounts.
  • You can partially or fully withdraw from your TFSA one year and then top up the account at a later time to the lifetime maximum contribution amount. Verify with your Investment Advisor as your funds might be locked in for a specific time or there might be fees to withdraw.
  • Do not over-contribute! You will be penalized monthly until the funds are withdrawn.
  • If you over-contribute to the plan you must immediately withdraw the over-contribution. See your Investment Advisor who will assist you. You can call Canada Revenue Agency at 1-800-959-8381 or go to Taxtips.ca

To see how this may pertain specifically to you contact your personal Rothenberg advisor or call one of our offices:
T 514.934.0586   Westmount (head office)
T 514.697.0035   Pointe-Claire
T 450.321.0001   South Shore
T 403.228.2378   Calgary

We will explain the details AND we will take care of the paperwork for you!