Frequently Asked Questions
WHAT IS A TFSA ?
TFSA stands for TAX FREE SAVINGS ACCOUNT. Unlike an RRSP, you don't get a tax deduction for your contributions but you will never pay tax on the growth or interest or principal when you withdraw funds.
WHAT CAN I INVEST IN A TFSA?
You can deposit Cash, Bonds, GICs, Stocks, Mutual & Segregated Funds, even shares of small business corporations.
WHAT ARE THE TFSA CONTRIBUTIONS LIMITS?
TFSA started with a $5000 annual limit that
increased incrementally over the years. One year, the limit was $10,000. For 2020, your limit is $6000. If you have never contributed, your limit is $69,500.
CAN I WITHDRAW
MONEY FROM MY
TFSA ANYTIME ?
IF SO, CAN I REPAY IT?
If you decide to replace or re-contribute all or a portion of your withdrawals into your TFSA in the same year, you can only do so if you have available TFSA contribution room. If you re-contribute, but do not have enough contribution room, you will have over-contributed to your TFSA in that year. You will be subject to a tax equal to 1% of the highest excess TFSA amount in the month, for each month that the excess amount remains in your account.
Your TFSA issuer will have more information.
For more information or other questions Call Us at 1-877-999-4246 or e-mail firstname.lastname@example.org.