Tax Free Savings Account (TFSA)

Tax Free Savings Accounts (TFSA) were introduced in the 2008 Federal Budget effective January 1, 2009 to help us save and invest for our future. Canadians who are 18 years of age or older may contribute up to $5,500 per year to a TFSA. TFSAs are great because the earnings are tax-free. In Canada, only your principal residence and your TFSA are true tax free investments.
Here are the highlights:

  • Your TFSA contribution can go to a wide array of savings or investments, such as a savings account, GICs, Mutual Funds, etc.
  • The unused contribution room can be carried forward, so if you can’t make the full $5,500 contribution one year, you can catch up in a subsequent year.
  • Withdrawals are tax free and the earnings are too.
  • Unlike RRSPs, if you make a withdrawal from your TFSA one year, it creates new room. You can therefore put the amount withdrawn back into the plan in a subsequent year

Testimonials

"Mahshid is a knowledgeable insurance consultant who has delivered excellent service and advice to our family and our company. She recommended insurance products that provided the coverage requested at the best price. As well, Mahshid thinks “outside the box” to ensure that her clients are receiving the best insurance product for their current situation. I highly recommend her to anyone that has a family or company that needs that piece of mind from a trusted professional. "
— Sasan Salamatian at Co-Founder / Senior Power Consultant at Youtopia Energy Solutions Corp