Tax-Free Savings Account

A Tax-Free Savings Account (TFSA) is a Canadian investment account that allows individuals to earn tax-free investment income. Contributions to a TFSA are not tax-deductible, but withdrawals, including any growth in the account, are not subject to tax.

Flexibility

Withdrawals can be made at any time for any purpose, and the amount withdrawn is added back to the contribution room in the following year.

No Impact on Income Tested Benefits

Withdrawals from a TFSA do not affect eligibility for government benefits or credits, such as Old Age Security (OAS) or the Guaranteed Income Supplement (GIS).

Ideal for Short- and Long-Term Goals

TFSAs can be used for various financial goals, whether saving for a vacation, a home, or retirement.