Tax Free Savings Account

How They Work

The TFSA is a registered savings account that allows taxpayers to earn investment income tax-free inside the account. Contributions to the account are not deductible for tax purposes, and withdrawals of contributions and earnings from the account are not taxable.

Any individual (other than a trust) who is resident in Canada and 18 years of age or older is eligible to establish a TFSA.

Every year individuals can contribute up to their contribution room for the year. Your contribution room is derived from three amounts:

A TFSA is permitted to hold the same investments as a registered retirement savings plan. This includes mutual funds, GICs, fixed income investments and certain shares of small business corporations.

The CRA will determine TFSA contribution room (based on information provided by issuers) for each eligible individual who files an annual T1 individual income tax return.

For answers to other Frequently Asked Questions visit the website link below:

TFSAs are provided through Aligned Capital Partners Inc.

Aligned Capital Partners Inc. (“ACPI*”) is a full-service investment dealer and a member of the Canadian Investor Protection Fund (“CIPF”) and Canadian Investment Regulatory Organization (“CIRO”). Investment services are provided through McCosh Private Wealth, an approved trade name of ACPI. Only investment-related products and services are offered through ACPI/McCosh Private Wealth and covered by the CIPF. Non-securities related services are provided through McCosh Financial Consultants. McCosh Financial Consultants is an independent company separate and distinct from ACPI/McCosh Private Wealth.

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