ALL ABOUT TAX-FREE SAVING ACCOUNT



WHAT IS A TAX- FREE SAVING ACCOUNT (“TFSA”)?

Individuals who are 18 years of age or older and who have a valid Social Insurance Number (SIN) to set money aside tax-free throughout their lifetime.


WHO CAN OPEN A TFSA?

The TFSA program began in 2009. Any individual who is 18 years of age or older and who has a valid sin is eligible to open a TFSA. And also a person who determined to be a non-resident of Canada for income tax purposes allowed to open a TFSA. However, any contributions made while a non-resident will be subject to a 1% tax for each month the contribution stays in the account.


WHAT TYPE OF TFSAs ARE THERE?

There area three type of TFSAs can be made:

  1. Deposit

  2. Annuity Contract

  3. Arrangement in Trust


WHO CAN ISSUE TFSAs?

  1. Banks

  2. Insurance companies

  3. Credit unions and

  4. Trust companies can issue TFSAs


HOW TO OPEN A TFSA?

In order to open a TFSA, you MUST do the following:

1. Contact your financial institution, credit union, or insurance company (issuer); and

2. Provide the issuer with your Social Insurance Number (SIN) and date of birth



WHAT IS CONTRIBUTIONS?

Contributions is the maximum amount that you can contribute to your TFSA. TFSA is limited by your TFSA contribution room and the contributions made to a TFSA are NOT tax-deductible.


WHAT ARE THE TFSA CONTRIBUTION ROOM LIMITS FOR EACH YEAR?


The annual TFSA dollar limit for the years 2009 to 2012 was $5,000.


The annual TFSA dollar limit for the years 2013 and 2014 was $5,500.


The annual TFSA dollar limit for the year 2015 was $10,000.


The annual TFSA dollar limit for the years 2016 to 2018 was $5,500.


The annual TFSA dollar limit for the year 2019 is $6,000.


WHERE CAN YOU FIND YOUR TFSA CONTRIBUTION ROOM INFORMATION?

You can fund your TFSA Contribution room information by using one of the following services:


■ Online my account services at canada.ca/my-cra-account

■ CRA phone services at 1-800-267-6999


Contact us: If you have any questions or inquiries regarding TFSA program, you can contact us at 647-987-2099 or send email to info@globalabcservices.com to book a free consultation.





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