Completely Tax-Free Growth
All investment earnings grow tax-free, meaning you keep 100% of your profits without paying any tax on them, ever.
TFSA: Flexible, Tax-Free Savings & Growth
A Powerful Tool for Achieving Your Short and Long-Term Financial Goals
What is a TFSA (Tax-Free Savings Account)?
A Tax-Free Savings Account (TFSA) is a registered savings plan introduced by the Canadian government that allows your savings and investments to grow completely tax-free. Unlike an RRSP, contributions to a TFSA are made with after-tax dollars (not tax-deductible), but all investment income earned within the TFSA and all withdrawals are 100% tax-free.
Key Benefits of a TFSA:
Tax-Free Withdrawals
You can withdraw funds from your TFSA at any time, for any reason, without paying any tax on the withdrawn amount.
Contribution Room is Reinstated
The full amount of any withdrawal is added back to your TFSA contribution room at the beginning of the following calendar year.
Highly Flexible
Ideal for various savings goals – short-term (e.g., emergency fund, vacation, car) or long-term (e.g., retirement, home down payment).
No Impact on GIS or OAS
TFSA withdrawals do not count as income, so they won't affect your eligibility for federal income-tested benefits like Old Age Security (OAS) or the Guaranteed Income Supplement (GIS).
Investment Choices
Hold qualified investments like Segregated Funds and GICs within your TFSA through insurance companies.
Understanding Your TFSA Contribution Room:
TFSA contribution room starts accumulating from the year you turn 18 (and are a Canadian resident). The annual TFSA dollar limit is set by the government each year. Your personal TFSA contribution room is the sum of:
- The annual TFSA dollar limit for the current year.
- Any unused TFSA contribution room from previous years.
- The total amount of withdrawals made from your TFSA in the previous year.
Annual TFSA Dollar Limits by Year:
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It's crucial to track your contributions and withdrawals to avoid over-contributing, which can result in penalties. You can find your official TFSA contribution room by logging into your CRA My Account.
Quick TFSA Maximum Room Estimator
Disclaimer: This calculator estimates the maximum possible TFSA contribution room you might have accumulated since 2009, assuming you were eligible (18+ and Canadian resident) each year. It does NOT account for your actual contributions or withdrawals made. For your precise, personalized TFSA contribution room, you MUST consult your official CRA My Account. This tool is for general illustrative purposes only.
TFSA vs. RRSP: Which is Right for You?
Both TFSAs and RRSPs are excellent savings tools, but they have different tax implications and benefits. The best choice (or combination) depends on your income, savings goals, and tax situation.
| Feature | TFSA | RRSP |
|---|---|---|
| Contributions | After-tax dollars (no deduction) | Tax-deductible |
| Investment Growth | Tax-free | Tax-deferred |
| Withdrawals | Tax-free | Taxable as income |
| Contribution Room on Withdrawal | Added back next year | Lost permanently |
| Impact on Gov't Benefits (OAS, GIS) | No impact | Withdrawals may reduce benefits |
| Primary Use | Flexible (short/long-term goals) | Primarily retirement savings |
Invest Through Trusted Partners
As a licensed life insurance agent, we can help you invest your TFSA contributions in products offered by insurance companies. Open your TFSA and choose from options like Segregated Funds and GICs through leading Canadian financial institutions such as Industrial Alliance (IA), Manulife, Equitable Life, Ivari, and Canada Protection Plan.
Segregated funds offer growth potential with insurance guarantees, while GICs provide secure, fixed returns. We'll help you select the right fit for your TFSA goals.
Unlock Tax-Free Growth with a TFSA
A TFSA is an essential tool for every Canadian saver and investor. Let us help you get started or optimize your existing TFSA strategy.
Open or Discuss Your TFSACall us at 647-709-3400 or email info@oneprotection.ca.