Saving just got a whole lot easier!
After an RRSP, the TFSA is, without question, the most advantageous investment vehicle created by the Canadian government to encourage personal savings. More flexible than an RRSP, it allows you to put money aside on a tax-free basis for a project (car, house, vacation…) to be used whenever you wish.
What is a TFSA?
The Tax-Free Savings Account (TFSA) program began in 2009. It is a way for individuals who are 18 and older and who have a valid social insurance number to set money aside tax-free throughout their lifetime. Contributions to a TFSA are not deductible for income tax purposes. Any amount contributed as well as any income earned in the account (for example, investment income and capital gains) is generally tax-free, even when it is withdrawn.
Who can open a TFSA?
Any individual who is 18 years of age or older and who has a valid social insurance number (SIN) is eligible to open a TFSA.
An extremely flexible savings vehicle, where you may withdraw funds whenever you want without a tax penalty.
Advantages of TFSA?
You can contribute up to the limit regardless of your income. In 2015, the annual TFSA contribution limit was $10,000. In 2016, it is $5,500 and will be indexed thereafter based on inflation. Furthermore, you may carry forward any unused contribution amounts into future years.
Your savings grow tax-free because your contributions and any earnings generated are not taxable.
You can put funds aside tax-free, such as an inheritance, a donation or investment income.
You may withdraw any amount at any time without penalty.
You can still save for your retirement even if you have reached your maximum contribution limit for your RRSP.
Why choose a TFSA with us?
Our IAG Savings and Retirement Plan allows you to invest wisely in your TFSA. It is designed for all types of investors, from those who like to play it safe to those who like to take risks. Furthermore, it offers you the choice of the following investment funds:
Guaranteed interest funds
Daily interest funds
Thanks to our segregated funds, we offer exceptional investment protection if the markets go down.
You can also invest your TFSA in securities. READ MORE
TFSA – Tax-Free Savings Account
DID YOU KNOW?
The 2016 annual RRSP limit is $25,370
WHAT'S YOUR PLAN TO RETIRE?
“The key thing is that rules of thumb unfortunately don’t work,” said David Trahair, a certified professional accountant in Toronto. “They don’t work because each of our personal financial situations is as individual as our fingerprints.”
He said while 70 per cent might be right for one person, it might be completely wrong for another. Read More
What is a RRSP account?
A Registered Retirement Savings Plan (RRSP) is a type of Canadian account for holding savings and investment assets. RRSPs have various tax advantages compared to investing outside of tax-preferred accounts. They were introduced in 1957 to promote savings for retirement by employees and self-employed people.
What is a RRSP contribution?
What is your RRSP/PRPP deduction limit?
The maximum you can deduct on your tax return, reducing your tax for that year.
How is your RRSP/PRPP deduction limit determined?
The Canada Revenue Agency generally calculates your RRSP/PRPP deduction limit as follows:
The lesser of
What is the deadline to contribute for the purpose of claiming a deduction on your 2016 return?
Contributions made to your RRSP, PRPP or SPP or your spouse's RRSP or SPP from March 1, 2016 to March 1, 2017 qualify.
HAVE YOU CHANGED EMPLOYERS?
LIRA – Locked-In Retirement Account
This plan is ideal if you have changed employers and wish to transfer funds from your group pension plan to an individual plan so as to have more control over your investments.
DID YOU KNOW?
You never pay tax on the money inside your TFSA, so you can invest in interest-bearing options like bond funds and GICs, or aim for growth in the form of investments like stocks. You can’t deduct the interest if you borrow money to invest in your TFSA, but the other benefits are attractive. When you take it out, it’s still tax free and it won’t affect your eligibility for income support programs based on earning levels.
We offer a savings account with an interest rate of 1.15%. This way, you enjoy all the tax advantages of a TFSA and benefit from an attractive interest rate without having to worry about your investments. Contact a financial advisor to find out more about our High-Performance TFSA. READ MORE
NEED A GIFT IDEA?
(Tax free savings account)
Go ahead and surprise him or her with the gift of a TFSA contribution.
While this doesn’t get you any tax benefits in return, neither does it affect your own contribution maximum. And hey, it lasts longer than flowers.
Also, your spouse can be the beneficiary of your plan after your death.
Ever heard of the 70% rule?
"You need 70 percent of your working income when you reach retirement."