Tax Free Savings Account (TFSA)

A Tax Free Savings Account is for any Canadian resident, 18 or over, who wants to grow their savings tax-free. Here at GT Brokers, we will help you invest in TFSA wiself. With sound finance advisors, your investment in TFSA will be greatly beneficial to you. With TFSA, you can earn a tax fee income. Deposits put into this account, and money withdrawn are not tax deductible.

Why should you save in TFSA?

When you invest in TFSA, paying off for your purchases are quicker. Interest earned on TFSA will be tax free, helping your investment grow much faster.

Is there any limit to contribution with TFSA?

Yes. It is $5000 per year. Even if you don’t max out this amount, you will not lose your contribution room. Any unused amonunts will be added to your limit the following year.

Withdrawls from TFSA?

One major advantage of investing in TFSA is that when you take your money out, it will not affect your tax credits or government income-tested benefits. Your withdrawals will not have any tax consequences. When you withdraw your money, the same amount of room will be freed up, meaning you are free to recontribute later on.

Other features of TFSA?

The following income-tested benefits will not be affected by the income earned from TFSA and your withdrawals:

• Old age security.
• Guaranteed income supplement.
• Employment insurance.

The following credts will not be affected by TFSA withdrawals and investment income:

• Age credit amount.
• GST credit.
• Working income tax benefit.
• Canada child tax benefit.