What are the benefits of a TFSA?
- TFSA interactions do not trigger any taxable events as long as investments are qualified and do not exceed the limit.
- Large variety of investing options to suit any goal and time horizon – TFSA may contain cash, mutual funds, certain stocks, bonds or guaranteed investment certificates (GICs).
- Annual contribution limits of $6,500 (grows with inflation) start accumulating at the age of 18 and carry forward indefinitely.
- No income requirements to contribute.
- No time limits – funds can be held for any time interval with no implications.
- Individuals can contribute to spouse’s TFSA and utilize efficient income splitting strategies to minimize family taxes.
Who is eligible for a TSFA?
- TFSA can be opened by any Canadian resident 18 years or older (19 in some provinces) with a valid Social Insurance Number.