The Tax-Free Savings Account (TFSA) is the most exciting innovation in personal savings since the creation of the Registered Retirement Savings Plan (RRSP) by the government of Canada.

The TFSA is a unique tax-free savings program (non-RRSP) now offered by Investia to help you:

• Accumulate more savings to pursue personal projects, TAX FREE
• Place income generated by invested sums (existing investments, investment income, inheritances, donations, etc.) in a tax shelter account
• Maximize your savings with retirement in mind

Advantages of the TFSA

If you’re a Canadian resident age 18 or older, you can benefit from a savings account that offers the following advantages:

• Simple and accessible You can contribute up to $5,000 annually in a tax-free account, regardless of your income.
• Tax free Any earnings generated (interest, capital gains or dividends) in the TFSA, as well as sums withdrawn, are not taxable.
• Cumulative contribution room Unused annual contribution room accumulates indefinitely.
• Ease of withdrawals You can withdraw any amount at any time without penalty. *There is no restriction as to the use of withdrawals.
• Ideal complement to an RRSP The TFSA investment instrument complements an RRSP as an efficient way to save and put more money toward your retirement.
• No affect on income-based government benefits Neither TFSA contributions nor its earnings affect eligibility for the Guaranteed Income Supplement, Old Age Security, the Canada Child Tax Benefit or other government benefits based on income.
• Practical income-splitting tool A couple can contribute to two TFSAs even if one of them has no income.
• Collateral assignment It’s possible to assign the assets of a TFSA as collateral for a loan.