| Services - Tax Reduction
Investia Peterborough provides the means for you to achieve all of your financial goals and objectives including:
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Health Spending Accounts |
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Income Splitting |
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Family Trusts |
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Tax Shelters |
(TFSA) Tax-Free Savings Account
Tax-Free Money for What Matters to You
Canadians need to save for many different purposes over their lifetimes. Reducing taxes on savings can help. That’s why the Government has introduced a Tax-Free Savings Account (TFSA)
How the TFSA Works
- The TFSA program began in 2009. It is a way for individuals who are 18 years of age or older and who have a valid social insurance number (SIN) to set money aside tax-free throughout their lifetime.
- Contributions to a TFSA will not be deductible for income tax purposes but investment income, including capital gains, earned in a TFSA will not be taxed, even when withdrawn.
- Unused TFSA contribution room can be carried forward to future years.
- You can withdraw funds from the TFSA at any time for any purpose.
- The amount withdrawn can be put back in the TFSA at a later date without reducing your contribution room.
- Neither income earned in a TFSA nor withdrawals will affect your eligibility for federal income-tested benefits and credits.
- Contributions to a spouse’s TFSA will be allowed and TFSA assets can be transferred to a spouse upon death.
How Is a TFSA Different From a Registered Retirement Savings Plan?
An RRSP is primarily intended for retirement. The TFSA is like an RRSP for everything else in your life.
Both plans offer tax advantages, but they have key differences.
- Contributions to an RRSP are deductible and reduce your income for tax purposes.
In contrast, your TFSA savings will not be deductible.
- Withdrawals from an RRSP are added to your income and taxed at current rates. Your TFSA withdrawals and growth within your account will not—they will be tax-free.
Please contact us today for more information on our services.
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