If you’re going to save, why not save tax-free?

Look into Alterna's TFSA solutions: 

TFSA eSavings Account​

TFSA eTerm Deposits

• There are no administration, withdrawal, or transfer fees!*
• It’s easy—set up an auto-transfer to your TFSA and build your savings over time
• The TFSA is great complement to your RRSP

TFSA Declaration of Trust (PDF)

Who can benefit from a TFSA?

• All Canadians with a valid Social Insurance Number who are at least 18 years of age may hold a TFSA
• Seniors who must withdraw from RRSP savings—there is no maximum age for holding a TFSA
• Those wishing to ‘park’ their money before committing to another type of investment
• Anyone who wishes to save and keep what they earn!

Contributions

• You can only contribute to your own TFSA
• Contribution limit is not tied to income

Don’t overdo it. Take care not to invest beyond your own contribution limit. For each month that an over-contribution remains in your TFSA, Canada Revenue Agency (CRA) will charge a penalty tax of 1% per month on the excess amount. Just be sure that you don’t contribute more than your yearly limit allows.

Unused Contribution Room

• If you don’t maximize your contribution in a given year, the remaining ‘contribution room’ accumulates and can be used in future years
• CRA will confirm your contribution room on your Notice of Assessment
• Unused contribution room is carried forward indefinitely, so you can ‘catch-up’ in future years
• You can take money out of your TFSA. The withdrawal will increase your contribution room for the following year

Example: In 2009, Sarah invests $5,000 in a TFSA. Later that year, she withdraws $3,000 for a vacation, but her plans change and she is not able to go. Since Sarah has no unused TFSA contribution room left, she will have to wait until 2010 to deposit the $3,000 back into her TFSA.

Withdrawals

• You may withdraw from your TFSA**, but keep in mind that you’re bound to the terms of your investment product
• Withdrawals are not reported as taxable income and are not subject to income tax
• Withdrawals will not impact eligibility for federal income tested benefits and credits such as OAS, GIS, Age Credit, GST, EI, child-tax benefit, or working income tax benefit

Restrictions and Transfers

• The amount inside a TFSA is transferable to another TFSA owned by you (but may be restricted by the terms of your investment product)
• A person may hold more than one TFSA, but must abide by the annual contribution limit
• A TFSA is transferable to a spouse/common-law partner on the break-down of a relationship or on the death of a holder (must be named as successor holder on the application)
• TFSAs are individual investments and are not able to be set up as joint investments
• Spousal contributions are not permitted

Our Tax-Free Savings Account Calculator helps to quantify the financial benefits of investing through TFSAs when investment income is shielded from taxes.

These calculators are made available to you as tools for independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy. All examples are hypothetical and are for illustrative purposes only. Please visit your branch to seek personalized advice from qualified professionals for all personal finance issues.

Total contribution limits from the introduction of Tax Free Saving Accounts in 2009 through 2019 should not exceed $63,500.