What is TFSA?
As the name suggested, any investment income within the TFSA is 100% tax-free. This allows your money to grow faster than a taxable account.
How to Qualify?
If you're a Canadian resident who has reached the age of 18 in Ontario, you are eligible for TFSA. Each year, you are qualified for the annual contribution amount as defined by the CRA as long as you are a Canadian resident age 18 or above.
For 2023, the annual contribution limit is $6,500, making the lifetime contribution limit $88,000. The annual contribution amount is designed to increase as indexed to inflation. You may contribute as a lump sum or on a monthly basis.
Unused Contribution Room
If you have not maximized your TFSA, any contribution room that you have not used in previous years is automatically carried forward to the current year. Therefore, your total contribution room would be comprised of the old contribution room from the previous year as well as the new contribution room in the current year.
You may make a partial or full withdrawal from your TFSA anytime you want, tax-free. The withdrawal is then added back to your contribution room in the following year.
Your TFSA can be invested in a wide range of options - GICs, bonds, mutual funds, ETFs, stocks, and structured products. We will design your portfolio based on your investment need.
Find out if investing in TFSA is right for you. Book an online appointment with our advisor today.
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