Tax Free Savings Accounts



Launching in January, 2009 - TFSA’s are a new tax-sheltered account for Canadians to save in. Any Canadian resident age 18 or older (who has filed an income tax return) will be able to contribute $5,000 per year to a TFSA. Any capital gains or income earned within the TFSA are tax free.

  • Contributions are done with after tax dollars (meaning contributions are not deductible against income).
  • There is no requirement of having earned income to contribute; everyone 18+ has a $5,000 contribution limit every year.
  • Money withdrawn from the TFSA can be done at anytime – tax free. Contribution room is not lost when funds are withdrawn, but re-contributing can only be done in the next calendar year.
  • If an individual doesn’t contribute the maximum amount, the unused contribution room can be carried forward indefinitely.
  • Any investment that can be held within RSP/RIF can be held in a TFSA.
  • The $5,000 annual contribution limit will be indexed to inflation in $500 increments.
  • There is no age limit for contributing to TFSA.

Contact your Wolverton Investment Advisor for more information.