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?

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You can deposit Cash, Bonds, GICs, Stocks, Mutual & Segregated Funds, even shares of small business corporations.

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WHAT ARE THE TFSA CONTRIBUTIONS LIMITS?

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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.