Tax-free savings account (TFSA)

Tax-free savings account (TFSA)

A TFSA is not a traditional savings account. It’s a type of plan that allows you to earn many types of investment income tax free (including capital gains). A TFSA can help you save for a large purchase or supplement your retirement savings plan.

Contributing to a TFSA

  • The annual TFSA dollar limit for 2018 is $5,500. In the future, the maximum will be indexed to inflation and rounded to the nearest $500 on a yearly basis.
  • Any unused contribution room is carried forward to future years.
  • Contributions are not tax deductible.
  • Income, losses and capital gains are not included in taxable income.


  • Any resident of Canada who is 18 or older, and has filed an income tax return is eligible to contribute to a TFSA.
  • You can have more than one TFSA, but the maximum allowable contribution amount applies to the total of all TFSAs you hold.
  • There is no spousal TFSA, but you can give money to your spouse to contribute to his or her own TFSA.
  • Unlike an RRSP, you can contribute to a TFSA even if you haven’t earned income.

Withdrawals from a TFSA

  • Increase contribution room by the same amount in the following year
  • Do not affect eligibility for federal income-tested benefits and credits such as Canada child tax benefit, working income tax benefit, GST credit and old age security benefits
  • Are not included in taxable income
  • Can be made at any time and for any purpose

To learn how a TFSA can fit into your financial security plan, please contact our office.

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The information on this website is intended for residents of Alberta only.

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