Tax Free Savings Account

Canadians have a great way to save and invest with a tax-free savings account (TFSA). As a rare opportunity to generate tax-free income, a TFSA can be an important part of your investment plan.

The Tax-Free Savings Account (TFSA) offers Canadians from all walks of life help in saving for their financial goals, both short- and long-term. The plan offers great flexibility; funds grow tax-free, can be withdrawn at any time on a tax-free basis, and can be used for any purpose.

How the TFSA works

  • Canadian residents age 18 and over can save up to $5,500 a year in a TFSA
  • Contributions are not tax deductible, but investment returns (capital gains, interest and dividends) earned in a TFSA are not taxed, even when withdrawn
  • Withdrawals are tax-free and funds can be used for any purpose
  • Unused contribution room can be carried forward indefinitely. As well, any amount withdrawn from a TFSA can be re-contributed in a future year without requiring new contribution room
  • Neither income earned in a TFSA nor withdrawals will affect eligibility for federal tax credits or income-tested benefits such as the Canada Child Tax Benefit, Old Age Security (OAS) or the Guaranteed Income Supplement (GIS)
  • Investments eligible for an RRSP can generally be held in a TFSA
Contact us to chat about how the Tax-Free Savings Account (TFSA) may fit into your financial plan.

Insurance products and Financial Planning services are offered through P & K Financial Inc. Mutual Funds are offered through Manulife Securities Investment Services Inc. Banking products and services are offered by referral arrangements through our related company Manulife Bank of Canada.

Manulife Securities related companies are 100% owned by The Manufactures Life Insurance Company (MLI) which is 100% owned by the Manulife Financial Corporation a publicly traded company. Details regarding all affiliated companies of MLI can be found on the Manulife Securities website Please confirm with your advisor which company you are dealing with for each of your products and services.