Tax-Free Savings Account
A tax-free savings account, or TFSA is a registered savings account. The account earns investment income without being subject to tax. Contributions to the account are not tax deductible, but withdrawals are not taxable. TFSAs have a contribution limit. They began at the start of 2009.
One of the most basic pieces of investment advice you’ll ever hear is to make sure you carefully read a contract and get clarification of anything you don’t understand before you sign.
Most investors are familiar with this advice, of course, but it’s important to keep in mind, especially when doing things like opening an investment account, or transferring investments …read more »
During the election campaign, Prime Minister Stephen Harper promised to double the annual contribution limit for your tax-free savings account (TFSA) after the federal budget is balanced, which the government expects to do by 2015.
(I recently wrote a special bulletin about how the election results could affect your investments. Click here to read this special bulletin and add your comments.)
The …read more »
Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a new or experienced investor, these weekly updates are designed to give you specific investment advice. Each Investor Toolkit update gives you a fundamental piece of investment strategy, and shows you how you can put it into practice right away.
Tip of the week: “How to make …read more »
TFSAs let you earn investment income — including interest, dividends and capital gains — tax free.
You could only invest $5,000 this year to start your TFSA. However, you gain an additional $5,000 of contribution room (indexed to inflation and rounded to the nearest $500 on a yearly basis) every year, plus you get to carry forward unused contribution room from …read more »
Ottawa’s new Tax-Free Savings Accounts (or TFSAs) let you earn investment income — including interest, dividends and capital gains — tax free.
A tax-free savings account can generally hold the same investments as an RRSP. This includes cash, mutual funds, publicly traded stocks, GICs and bonds.
However, you are best to hold lower-risk investments in your TFSA. That’s because you don’t want …read more »
Starting in 2009, Ottawa’s new Tax-Free Savings Accounts (or TFSAs) will let you earn investment income — including interest, dividends and capital gains — tax free. The new accounts are open to Canadian residents who are at least 18 years old and have filed at least one tax return.
A nice complement to RRSPs
Unlike RRSP contributions, TFSA contributions DON’T give you …read more »
