The Tax-Free Savings Account (TFSA) is the newest tax-advantaged savings vehicle. Introduced in 2009, it is available to all Canadian residents age 18 or older. The TFSA can be used for both short and long-term savings goals. Contributions you make to a TFSA are NOT tax deductible. However, all growth, regardless of how it was earned – interest, dividends, or capital gains, is tax free. Any unused room can be carried forward to future years and any funds withdrawn results in your TFSA contribution room being returned to you to be used again at a later date.
The Group TFSA’s advantage is that all contributions can be done by the payroll department, and all contributions are tracked on the paystub (depending on the payroll system).
To find out how a TFSA can fit into your financial plan speak to your TK Wealth Management financial advisor.