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.