We would like to discuss facts about the Tax-Free Savings Account (TFSA).
- The annual TFSA dollar limit for the year 2019 is $6,000.
- You can take advantage of TFSA because TFSA is available to all Canadians, 18 years and older.
- Main benefit of having a TFSA is that any interest, dividends and capital gains earned in a TFSA are not subject to tax;
- Once your money is under TFSA account, you can put your money into a wide range of investments, including high-interest savings accounts, mutual funds, guaranteed investment certificates, listed securities, or other types of qualified investment products.
- If you want to know about how much you can put in your TFSA, then
- You can find out your unused TFSA contribution via to one of the following services:
1) CRA My Account
3) Through the automated Tax Information Phone Service (T.I.P.S.) at 1.800.267.6999.
- Funds available in your TFSA can be withdrawn tax-free at any time for any purpose. You can re-contribute withdrawn amounts in the same year only if you have unused TFSA contribution room. Otherwise, you have to wait until the following year.
- There are many aspects of TFSA program. One of the key features of TFSA is that the Income earned in a TFSA and withdrawals do not affect your eligibility for federal income-tested benefits and credits. Also, attribution rules do not apply for funds gifted to a spouse for the purpose of the spouse’s TFSA contribution.
We cheer you up to make the maximum contribution to your TFSA as a tax-efficient way to save for the future.
Should you have any questions regarding this or any other CRA related matters, please do not hesitate to contact us and book a consultation today.