How You May Benefit from a TFSA
The Tax-Free Savings Account (TFSA) is an account that does not apply taxes on any contributions, interest earned, dividends, or capital gains, and can be withdrawn tax free.
Because your TFSA is more than just another savings account, you can use it to:
• Save even more if you have limited contribution room or maximized your Registered Retirement Savings Plan (RRSP) contributions
• Create a tax-efficient income stream in retirement, especially if you have excess Registered Retirement Income Fund (RRIF)* or pension income
• Take advantage of additional income-splitting opportunities with your spouse
• Add to your existing long-term investment strategy – tax-free
Annual TFSA Contribution LimitsThe latest increase for 2019 was recently announced and can be found on the government website for personal tax limits indexed to inflation. Future contribution limits are indexed to inflation rounded to the nearest $500. I would estimate the 2020 TFSA limit to be at $6,000 again. read more
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