Tax-Free Investment Savings Account

A Tax-Free Savings Account (TFSA) is a handy tax shelter worth considering. The great feature of a TFSA is that interest you make on your money is tax free. You can even hold some investments in your TFSA to help max out the return on your investment. You can also withdraw money with no penalty.

 

Each year, you can contribute up to $5,000 to your TFSA. If you don’t contribute the full amount each year, you can carry your contribution room forward. Also, money withdrawn can be carried forward and put back into your TFSA in future years. Keep in mind that if you have contributed the maximum amount for the year and you withdraw money, you are not allowed to replace this money until the following year.

 

Any Canadian resident 18 years or older who is an eligible taxpayer and has a Social Insurance Number (SIN) is eligible for a TFSA.

You can save for anything you’d like – a new car, a family holiday or just for a rainy day. And you can withdraw your money anytime, tax-free. You can even contribute to a spouse’s TFSA based on their available contribution room.

Your FirstOntario TFSA can hold a collection of investments (like your RSP) so you can choose to invest in a savings account, mutual funds from Credential Asset Management Inc.*, GICs, bonds and so on.

 

 

Features of this new registered product:

•  Available to Canadian residents age 18 and older

•  Maximum annual contribution limit is $5,000

•  Income earned and capital gains under a TFSA will be tax sheltered

•  Withdrawal of contributions and/or income will not be subject to tax

•  Unused contribution room may be carried forward and contributed in a future year

•  Withdrawals (capital and income) will increase the unused contribution room

•  Unused contribution room will be reported on your annual CRA Notice of Assessment

•  Contributions will not be tax deductible

•  Contributions may only be made by the owner

 

Click here to view some TFSA frequently asked questions.

To start investing in your TFSA, call FirstOntario at 1-800-616-8878 or visit your nearest branch.

For more information on the TFSA click here or visit the Canada Revenue Agency at http://www.cra-arc.gc.ca/tx/rgstrd/tfsa-celi/menu-eng.html

*Mutual Funds are offered through Credential Asset Management Inc.