Investments

Investments

Tax Free Savings Account


Tax Free Savings Accounts (TFSA) are an excellent addition to your investment portfolio. Our TFSAs offer competitive interest rates as well as fixed and variable terms to fit your lifestyle.

Unlike a RRSP, a TFSA allows you to make withdrawals tax-free and contributions are not tax-deductible. Any withdrawals made can be re-contributed the following year or in future years as long as you stay within your personal contribution limits.


Let’s compare TFSAs & RRSPs

DetailsTFSARRSP
PurposeSavings for a wide range of financial goalsSavings to provide income for retirement
Age RequirementsYou must be 18 years old to open and there is no maximum age to closeThere is no minimum age, however you must have income & filed a tax return. RRSP contracts must be closed as of December 31 in the year you turn 71
Tax DeductionContributions are not tax deductible. All interest earned is tax freeContributions are tax deductible
Contribution LimitsThe annual TFSA dollar limit for 2020 is $6,000.
Based on a percentage of your previous years income. You will also have any unused contribution room that has been carried forward from past years.
Over ContributionsGoing over your contribution limit will result in a 1% penalty per monthGoing over your contribution limit will result in a 1% penalty per month
Withdrawals
Withdrawals are tax free and are not included in your income. Amounts withdrawn can be recontributed the following year with the exception of over contributions
Withdrawals are taxable and become part of your income.

Invest for Your Future...

Invest for Your Future...

With Flexible options
from Airline Financial.