Tax Free Savings Account
What are TFSAs?
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A federal government tax-shelterd saving program, designed to encourage
Candians to save and invest for short, medium or long-term goals.
Contributions
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Annual Limit for 2020 is $6,000 each year (begining at age 18)
+ Previous Contribution Room
+ Previous year withdrawals
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You can deposit a maximum total contribution of $69,500
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Contribution Period: January 1 to December 31 each year.
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Contributions above the overall contribution limit is subject to a 1% / month penalty
(refer to CRA website)
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A client's contribution room can be found in their Notice of Assessment, CRA My
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Account(online), Notice of Reassessment, and T1028
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In-kind contributions: captial gains must be declared, capital losses cannot be
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claimed. Current market value is used to calculate contribution amount.
Benefits at a Glance
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Investments inside a TFSA are tax sheltered
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Contributions are after-tax (no deduction)
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Withdrawals are tax-free(no withholding)