TFSA – Tax-Free Savings Account

The tax-free savings account (TFSA) can be a good savings tool to grow your money in a tax shelter, since the amounts invested are available at all times.

TFSA features and benefits

  • Grow your savings in a tax shelter: the income generated and amounts withdrawn are non-taxable.
  • You can make withdrawals for any amount at any time and without penalty, and the amounts withdrawn can be redeposited starting the next year.
  • Unused contribution room accumulates indefinitely.
  • You can assign TFSA assets to guarantee a loan.
  • There are no restrictions on how you use the amounts withdrawn from your TFSA.
  • The maximum annual amount that you can pay into your TFSA is set by the federal government each year and is independent of income. The TFSA contribution limit increase from $6,000 to $6,500 in 2023 due to indexing.