TFSA

Tax-Free Savings Account

 

Save with the Tax-Free Savings Account

The Tax-Free Savings Account (TFSA) is a flexible, registered, general-purpose savings vehicle that allows Canadians to earn tax-free investment income to more easily meet lifetime savings needs. The TFSA complements existing registered savings plans like the Registered Retirement Savings Plans (RRSP) and the Registered Education Savings Plans (RESP).

Contribution Limits

The annual TFSA dollar limit for the years 2009, 2010, 2011 and 2012 was $5,000.

The annual TFSA dollar limit for the years 2013 and 2014 was $5,500.

The annual contribution for 2015was$10,000.

The annual contribution for 2016 was $5500.

The annual contribution for 2017 is $5500.

Your TFSA Contribution room information can be found by going to one of the following services:

In addition, if you want to receive a TFSA Room Statement, contact CRA at  http://www.cra-arc.gc.ca/cntct/menu-eng.html

You can also ask for a TFSA Transaction Summary that shows the information received from you TFSA issuer(s) about your contributions and withdrawals.

How your TFSA contribution room is determined

The TFSA contribution room is made up of:

  • your TFSA dollar limit plus indexation;
  • any unused TFSA contribution room from the previous year; and
  • any withdrawals made from the TFSA in the previous year.

You must keep records about your TFSA transactions to ensure that you do not exceed your TFSA contribution room. CRA will also keep track of an individuals contribution room and determine the balance of room for each eligible individual based on information provided annually by the TFSA issuers.

How the Tax-Free Savings Account Works

  • Investment income earned in a TFSA is tax-free.
  • Withdrawals from a TFSA are tax-free.
  • Unused TFSA contribution room is carried forward and accumulates in future years.
  • Full amount of withdrawals can be put back into the TFSA in future years. Re-contributing in the same year may result in an over-contribution amount which would be subject to a penalty tax.
  • Choose from a wide range of investment options such as mutual funds, Guaranteed Investment Certificates (GICs) and bonds.
  • Contributions are not tax-deductible.
  • Neither income earned within a TFSA nor withdrawals from it affect eligibility for federal income-tested benefits and credits, such as Old Age Security, the Guaranteed Income Supplement, and the Canada Child Tax Benefit.
  • Funds can be given to a spouse or common-law partner for them to invest in their TFSA.
  • TFSA assets can generally be transferred to a spouse or common-law partner upon death.
For more information regarding TFSA’s follow our link to CRA

  • Head Office

    Head Office

    41 Gerrish Street
    P.O. Box 340
    Windsor, NS
    B0N 2T0
    Tel: (902) 798-1820
    Fax: (902) 798-1255

  • Brooklyn

    Brooklyn Branch

    7763 HWY 14
    P.O. Box 40
    Newport, Hants Co., NS
    B0N 2A0
    Tel: (902) 757-2525
    Fax: (902) 757-1766

  • Kennetcook

    Kennetcook Branch

    6206 Hwy. #354
    Comp. 8, Box 8
    Kennetcook, NS
    B0N 1P0
    Tel: (902) 362-2594
    Fax: (902) 362-2150

  • Windsor

    Windsor Branch

    150 Wentworth Road
    P.O. Box 340
    Windsor, NS
    B0N 2T0
    Tel: (902) 798-5726
    Fax: (902) 798-4425

Contact Victory Credit Union