{"id":79812,"date":"2018-01-08T17:25:08","date_gmt":"2018-01-08T21:25:08","guid":{"rendered":"https:\/\/www.desmaraisfinancial.com\/?page_id=79812"},"modified":"2024-08-21T13:11:37","modified_gmt":"2024-08-21T17:11:37","slug":"tax-free-savings-account-tfsa","status":"publish","type":"page","link":"https:\/\/www.desmaraisfinancial.com\/tax-free-savings-account-tfsa\/","title":{"rendered":"What Is A Tax-Free Savings Account (TFSA)?"},"content":{"rendered":"

[et_pb_section fb_built=”1″ _builder_version=”4.16″ background_color=”rgba(0,0,0,0.55)” background_image=”https:\/\/www.desmaraisfinancial.com\/wp-content\/uploads\/2017\/05\/desmarais-financial-planning-header.jpg” background_position=”top_center” background_blend=”overlay” custom_padding=”150px|0px|150px|0px” global_colors_info=”{}”][et_pb_row _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.16″ text_font=”||||||||” header_font=”|700|||||||” header_text_align=”center” header_font_size=”40px” background_layout=”dark” custom_margin=”||10px|” global_colors_info=”{}”]<\/p>\n

What is a Tax-Free Savings Account (TFSA)?<\/h1>\n

[\/et_pb_text][et_pb_text _builder_version=”4.16″ text_font=”||||||||” text_font_size=”18px” text_orientation=”center” background_layout=”dark” global_colors_info=”{}”]TFSAs are much more than a savings account and can create tax-free income in retirement.
\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.16″ background_color=”#f4f4f4″ global_colors_info=”{}”][et_pb_row _builder_version=”4.16″ global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.16″ text_font=”||||||||” text_orientation=”center” global_colors_info=”{}”]TFSAs are among the most useful investment and tax-planning tools.
\nThey may be effective in income-splitting, gifting and estate-planning strategies.[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.16″ use_background_color_gradient=”on” background_color_gradient_type=”circular” background_color_gradient_stops=”#f4f4f4 0%|#ffffff 100%” background_color_gradient_start=”#f4f4f4″ background_color_gradient_end=”#ffffff” global_colors_info=”{}”][et_pb_row _builder_version=”4.16″ global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.16″ global_colors_info=”{}”]<\/p>\n

10 Things to know about TFSAs<\/h2>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_4,1_4,1_4,1_4″ use_custom_gutter=”on” gutter_width=”2″ make_equal=”on” _builder_version=”4.16″ global_colors_info=”{}”][et_pb_column type=”1_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_blurb title=”1″ image=”https:\/\/www.desmaraisfinancial.com\/wp-content\/uploads\/2017\/05\/services-icon-15.png” _builder_version=”4.16″ header_font=”|700|||||||” header_text_align=”center” header_text_color=”#ffffff” header_font_size=”35px” body_font=”||||||||” body_text_align=”center” body_font_size=”18px” custom_padding=”30px||30px|” animation_style=”slide” animation_direction=”bottom” animation_delay=”500ms” animation_intensity_slide=”5%” animation=”off” custom_css_blurb_image=”width: 100px;” custom_css_blurb_title=”margin-top: -80px;||padding-bottom: 50px;||margin-bottom: 10px;||||border-bottom: solid;||border-bottom-color: #599ead;|| width: 30%;|| position: relative;|| left: 35%;” global_colors_info=”{}”]TFSAs are available to Canadians age 18+
\n[\/et_pb_blurb][\/et_pb_column][et_pb_column type=”1_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_blurb title=”2″ image=”https:\/\/www.desmaraisfinancial.com\/wp-content\/uploads\/2017\/05\/services-icon-12.png” _builder_version=”4.16″ header_font=”|700|||||||” header_text_align=”center” header_text_color=”#ffffff” header_font_size=”35px” body_font=”||||||||” body_text_align=”center” body_font_size=”18px” custom_padding=”30px||30px|” animation_style=”slide” animation_direction=”bottom” animation_delay=”800ms” animation_intensity_slide=”5%” animation=”off” custom_css_blurb_image=”width: 100px;” custom_css_blurb_title=”margin-top: -80px;||padding-bottom: 50px;||margin-bottom: 10px;||||border-bottom: solid;||border-bottom-color: #599ead;|| width: 30%;|| position: relative;|| left: 35%;” global_colors_info=”{}”]The annual contribution limit is indexed for inflation
\n[\/et_pb_blurb][\/et_pb_column][et_pb_column type=”1_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_blurb title=”3″ image=”https:\/\/www.desmaraisfinancial.com\/wp-content\/uploads\/2017\/05\/services-icon-13.png” _builder_version=”4.16″ header_font=”|700|||||||” header_text_align=”center” header_text_color=”#ffffff” header_font_size=”35px” body_font=”||||||||” body_text_align=”center” body_font_size=”18px” custom_padding=”30px||30px|” animation_style=”slide” animation_direction=”bottom” animation_delay=”1000ms” animation_intensity_slide=”5%” animation=”off” custom_css_blurb_image=”width: 100px;” custom_css_blurb_title=”margin-top: -80px;||padding-bottom: 50px;||margin-bottom: 10px;||||border-bottom: solid;||border-bottom-color: #599ead;|| width: 30%;|| position: relative;|| left: 35%;” global_colors_info=”{}”]You can save tax free for any goal you want (car, home, vacation)
\n[\/et_pb_blurb][\/et_pb_column][et_pb_column type=”1_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_blurb title=”4″ image=”https:\/\/www.desmaraisfinancial.com\/wp-content\/uploads\/2017\/05\/services-icon-11.png” _builder_version=”4.16″ header_font=”|700|||||||” header_text_align=”center” header_text_color=”#ffffff” header_font_size=”35px” body_font=”||||||||” body_text_align=”center” body_font_size=”18px” custom_padding=”30px||30px|” animation_style=”slide” animation_direction=”bottom” animation_delay=”1250ms” animation_intensity_slide=”5%” animation=”off” custom_css_blurb_image=”width: 100px;” custom_css_blurb_title=”margin-top: -80px;||padding-bottom: 50px;||margin-bottom: 10px;||||border-bottom: solid;||border-bottom-color: #599ead;|| width: 30%;|| position: relative;|| left: 35%;” global_colors_info=”{}”]You don\u2019t need to have earned income to contribute
\n[\/et_pb_blurb][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_4,1_4,1_2″ use_custom_gutter=”on” gutter_width=”2″ make_equal=”on” _builder_version=”4.16″ custom_padding=”0px|0px|25.5938px|0px” global_colors_info=”{}”][et_pb_column type=”1_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_blurb title=”5″ image=”https:\/\/www.desmaraisfinancial.com\/wp-content\/uploads\/2017\/05\/services-icon-9.png” _builder_version=”4.16″ header_font=”|700|||||||” header_text_align=”center” header_text_color=”#ffffff” header_font_size=”35px” body_font=”||||||||” body_text_align=”center” body_font_size=”18px” custom_padding=”30px||30px|” animation_style=”slide” animation_direction=”bottom” animation_delay=”700ms” animation_intensity_slide=”5%” animation=”off” custom_css_main_element=”min-height: 50%;||padding-top: 25%!important;” custom_css_blurb_image=”width: 100px;” custom_css_blurb_title=”margin-top: -80px;||padding-bottom: 50px;||margin-bottom: 10px;||||border-bottom: solid;||border-bottom-color: #599ead;|| width: 30%;|| position: relative;|| left: 35%;” global_colors_info=”{}”]You don\u2019t have to set up a TFSA or file a tax return to earn contribution room
\n[\/et_pb_blurb][\/et_pb_column][et_pb_column type=”1_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_blurb title=”6″ image=”https:\/\/www.desmaraisfinancial.com\/wp-content\/uploads\/2017\/05\/services-icon-10.png” _builder_version=”4.16″ header_font=”|700|||||||” header_text_align=”center” header_text_color=”#ffffff” header_font_size=”35px” body_font=”||||||||” body_text_align=”center” body_font_size=”18px” custom_padding=”30px||30px|” animation_style=”slide” animation_direction=”bottom” animation_delay=”900ms” animation_intensity_slide=”5%” animation=”off” custom_css_main_element=”min-height: 50%;||padding-top: 25%!important;” custom_css_blurb_image=”width: 100px;” custom_css_blurb_title=”margin-top: -80px;||padding-bottom: 50px;||margin-bottom: 10px;||||border-bottom: solid;||border-bottom-color: #599ead;|| width: 30%;|| position: relative;|| left: 35%;” global_colors_info=”{}”]You can take money out when you want, for any reason, without paying any tax
\n[\/et_pb_blurb][\/et_pb_column][et_pb_column type=”1_2″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_image src=”https:\/\/www.desmaraisfinancial.com\/wp-content\/uploads\/2017\/05\/desmarais-financial-insurance-slider-3.jpg” align_tablet=”center” align_phone=”” align_last_edited=”on|desktop” _builder_version=”4.16″ border_width_all=”2px” border_color_all=”#d2ab66″ global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_4,1_4,1_4,1_4″ use_custom_gutter=”on” gutter_width=”2″ make_equal=”on” _builder_version=”4.16″ custom_padding=”0px|0px|25.5938px|0px” global_colors_info=”{}”][et_pb_column type=”1_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_blurb title=”7″ image=”https:\/\/www.desmaraisfinancial.com\/wp-content\/uploads\/2017\/05\/services-icon-2.png” _builder_version=”4.16″ header_font=”|700|||||||” header_text_align=”center” header_text_color=”#ffffff” header_font_size=”35px” body_font=”||||||||” body_text_align=”center” body_font_size=”18px” custom_padding=”30px||30px|” animation_style=”slide” animation_direction=”bottom” animation_delay=”500ms” animation_intensity_slide=”5%” animation=”off” custom_css_blurb_image=”width: 100px;” custom_css_blurb_title=”margin-top: -80px;||padding-bottom: 50px;||margin-bottom: 10px;||||border-bottom: solid;||border-bottom-color: #599ead;|| width: 30%;|| position: relative;|| left: 35%;” global_colors_info=”{}”]If you take money out, you can re-contribute it the following year, in addition to the annual maximum
\n[\/et_pb_blurb][\/et_pb_column][et_pb_column type=”1_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_blurb title=”8″ image=”https:\/\/www.desmaraisfinancial.com\/wp-content\/uploads\/2017\/05\/services-icon-8.png” _builder_version=”4.16″ header_font=”|700|||||||” header_text_align=”center” header_text_color=”#ffffff” header_font_size=”35px” body_font=”||||||||” body_text_align=”center” body_font_size=”18px” custom_padding=”30px||30px|” animation_style=”slide” animation_direction=”bottom” animation_delay=”800ms” animation_intensity_slide=”5%” animation=”off” custom_css_blurb_image=”width: 100px;” custom_css_blurb_title=”||||margin-top: -80px;||padding-bottom: 50px;||margin-bottom: 10px;||||border-bottom: solid;||border-bottom-color: #599ead;|| width: 30%;|| position: relative;|| left: 35%;” global_colors_info=”{}”]You can hold a wide range of investments in a TFSA, like cash, GICs, bonds, stock, mutual funds and segregated funds
\n[\/et_pb_blurb][\/et_pb_column][et_pb_column type=”1_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_blurb title=”9″ image=”https:\/\/www.desmaraisfinancial.com\/wp-content\/uploads\/2017\/05\/services-icon-12.png” _builder_version=”4.16″ header_font=”|700|||||||” header_text_align=”center” header_text_color=”#ffffff” header_font_size=”35px” body_font=”||||||||” body_text_align=”center” body_font_size=”18px” custom_padding=”30px||30px|” animation_style=”slide” animation_direction=”bottom” animation_delay=”1000ms” animation_intensity_slide=”5%” animation=”off” custom_css_blurb_image=”width: 100px;” custom_css_blurb_title=”||||margin-top: -80px;||padding-bottom: 50px;||margin-bottom: 10px;||||border-bottom: solid;||border-bottom-color: #599ead;|| width: 30%;|| position: relative;|| left: 35%;” global_colors_info=”{}”]You can put money into your spouse\u2019s or common-law partner\u2019s account.
\n[\/et_pb_blurb][\/et_pb_column][et_pb_column type=”1_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_blurb title=”10″ image=”https:\/\/www.desmaraisfinancial.com\/wp-content\/uploads\/2017\/05\/services-icon-4.png” _builder_version=”4.16″ header_font=”|700|||||||” header_text_align=”center” header_text_color=”#ffffff” header_font_size=”35px” body_font=”||||||||” body_text_align=”center” body_font_size=”18px” custom_padding=”30px||30px|” animation_style=”slide” animation_direction=”bottom” animation_delay=”1250ms” animation_intensity_slide=”5%” animation=”off” custom_css_blurb_image=”width: 100px;” custom_css_blurb_title=”margin-top: -80px;||padding-bottom: 50px;||margin-bottom: 10px;||||border-bottom: solid;||border-bottom-color: #599ead;|| width: 30%;|| position: relative;|| left: 35%;” global_colors_info=”{}”]If you have more than one TFSA you are able to transfer funds between them without affecting your contribution room as long as the transfer is done directly between the TFSAs.
\n[\/et_pb_blurb][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.16″ use_background_color_gradient=”on” background_color_gradient_type=”circular” background_color_gradient_direction_radial=”right” background_color_gradient_stops=”rgba(89,158,173,0.63) 36%|#599ead 100%” background_color_gradient_start=”rgba(89,158,173,0.63)” background_color_gradient_start_position=”36%” background_color_gradient_end=”#599ead” custom_padding=”100px|0px|100px|0px” global_colors_info=”{}”][et_pb_row column_structure=”2_3,1_3″ _builder_version=”4.16″ max_width=”980px” use_custom_width=”on” custom_width_px=”980px” global_colors_info=”{}”][et_pb_column type=”2_3″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.16″ text_font=”||||||||” header_font=”||||||||” background_layout=”dark” animation_style=”flip” animation_direction=”bottom” global_colors_info=”{}”]<\/p>\n

TFSA Contribution Limits by Year<\/h2>\n

[\/et_pb_text][et_pb_text _builder_version=”4.16″ text_font=”||||||||” text_font_size=”18px” text_line_height=”1.3em” background_layout=”dark” animation_style=”flip” animation_direction=”bottom” animation_delay=”100ms” global_colors_info=”{}”]TFSA contribution room is indexed for inflation and annual limits vary by year.\u00a0 If you don\u2019t contribute the full amount each year, you can carry forward the unused amounts, based on the contribution limits for each year.<\/p>\n

Here are the annual contribution limits for each year since 2009.
\n[\/et_pb_text][et_pb_button button_url=”\/#contact” button_text=”Contact Us” _builder_version=”4.16″ background_layout=”dark” animation_style=”flip” animation_direction=”bottom” animation_delay=”150ms” global_colors_info=”{}” button_text_size__hover_enabled=”off” button_one_text_size__hover_enabled=”off” button_two_text_size__hover_enabled=”off” button_text_color__hover_enabled=”off” button_one_text_color__hover_enabled=”off” button_two_text_color__hover_enabled=”off” button_border_width__hover_enabled=”off” button_one_border_width__hover_enabled=”off” button_two_border_width__hover_enabled=”off” button_border_color__hover_enabled=”off” button_one_border_color__hover_enabled=”off” button_two_border_color__hover_enabled=”off” button_border_radius__hover_enabled=”off” button_one_border_radius__hover_enabled=”off” button_two_border_radius__hover_enabled=”off” button_letter_spacing__hover_enabled=”off” button_one_letter_spacing__hover_enabled=”off” button_two_letter_spacing__hover_enabled=”off” button_bg_color__hover_enabled=”off” button_one_bg_color__hover_enabled=”off” button_two_bg_color__hover_enabled=”off”][\/et_pb_button][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.25.0″ text_font=”||||||||” background_layout=”dark” module_alignment=”center” animation_style=”flip” animation_direction=”bottom” animation_delay=”50ms” global_colors_info=”{}”]<\/p>\n

Year\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Contribution Limit<\/strong><\/p>\n

2009\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $5,000<\/p>\n

2010\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $5,000<\/p>\n

2011\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $5,000<\/p>\n

2012\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $5,000<\/p>\n

2013\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $5,500<\/p>\n

2014\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $5,500<\/p>\n

2015\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $10,000<\/p>\n

2016\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $5,500<\/p>\n

2017\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $5,500<\/p>\n

2018\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $5,500<\/p>\n

2019\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $6,000<\/p>\n

2020\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $6,000<\/p>\n

2021\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 $6,000<\/p>\n

2022\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 $6,000<\/p>\n

2023\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 $6,500<\/p>\n

2024\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 $7,000<\/p>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.16″ custom_padding=”100px||100px|” animation_style=”flip” animation_delay=”150ms” global_colors_info=”{}”][et_pb_row _builder_version=”4.16″ global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.16″ text_font=”||||||||” text_font_size=”30px” header_font=”||||||||” text_orientation=”center” global_colors_info=”{}”]More Information on Tax-Free Savings Accounts
\n[\/et_pb_text][et_pb_divider show_divider=”off” _builder_version=”4.16″ max_width=”100px” module_alignment=”center” global_colors_info=”{}”][\/et_pb_divider][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_3,1_3,1_3″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_column type=”1_3″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.16″ global_colors_info=”{}”]<\/p>\n

How can I secure my TFSA to benefit my loved ones?<\/h4>\n

 <\/p>\n

TFSA account holders may designate their spouse or common-law partner as a successor-holder, and anyone else as a beneficiary.\u00a0 The successor-holder trumps a beneficiary if both are alive at the time of the original planholder\u2019s death.\u00a0 And, a beneficiary trumps the deceased\u2019s estate if the successor-holder is also dead.\u00a0 If neither is specified, the assets in the TFSA account become part of the deceased\u2019s estate, losing their tax-sheltered status and becoming subject to probate fees.
\n[\/et_pb_text][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.16″ global_colors_info=”{}”]<\/p>\n

What happens to my TFSA when I’m gone?<\/h4>\n

 <\/p>\n

If a surviving spouse is the successor-holder <\/strong>in the TFSA contract, he or she will become the new TFSA holder immediately when the original plan-holder dies.\u00a0 The deceased holder\u2019s TFSA is never de-registered and the assets remain continuously sheltered inside a TFSA.\u00a0 The successor-holder (surviving spouse or common-law partner) assumes ownership of the TFSA contract and all its contents.<\/p>\n

[\/et_pb_text][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.16″ global_colors_info=”{}”]<\/p>\n

How do stocks affect my TFSA?<\/h4>\n

 <\/p>\n

For TFSAs that hold securities\/stocks if you make frequent trades in your TFSA, you might face a bigger than expected tax bill. The CRA is taking a very aggressive position, in some cases, that some extensive trading in a TFSA could lead to the TFSA carrying on a business.\u00a0 When a TFSA is deemed to be carrying on a business, any associated gains are taxable as income, negating the TFSA\u2019s tax-sheltering.
\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.16″ background_image=”https:\/\/www.desmaraisfinancial.com\/wp-content\/uploads\/2017\/05\/desmarais-financial-investments-header-dark.jpg” parallax=”on” global_colors_info=”{}”][et_pb_row _builder_version=”4.16″ custom_padding=”100px||100px|” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.16″ text_font=”|700|||||||” text_font_size=”36px” text_orientation=”center” background_layout=”dark” custom_padding=”20px|||” global_colors_info=”{}”]Plan For The Future
\n[\/et_pb_text][et_pb_text _builder_version=”4.16″ text_font=”|300|||||||” text_font_size=”22px” text_orientation=”center” background_layout=”dark” global_colors_info=”{}”]Ready to get started with your own TFSA? We’re here to help!
\n[\/et_pb_text][et_pb_button button_url=”\/#contact” button_text=”Contact Us” button_alignment=”center” _builder_version=”4.16″ background_layout=”dark” custom_margin=”||0px|” custom_padding=”|||” global_colors_info=”{}” button_text_size__hover_enabled=”off” button_one_text_size__hover_enabled=”off” button_two_text_size__hover_enabled=”off” button_text_color__hover_enabled=”off” button_one_text_color__hover_enabled=”off” button_two_text_color__hover_enabled=”off” button_border_width__hover_enabled=”off” button_one_border_width__hover_enabled=”off” button_two_border_width__hover_enabled=”off” button_border_color__hover_enabled=”off” button_one_border_color__hover_enabled=”off” button_two_border_color__hover_enabled=”off” button_border_radius__hover_enabled=”off” button_one_border_radius__hover_enabled=”off” button_two_border_radius__hover_enabled=”off” button_letter_spacing__hover_enabled=”off” button_one_letter_spacing__hover_enabled=”off” button_two_letter_spacing__hover_enabled=”off” button_bg_color__hover_enabled=”off” button_one_bg_color__hover_enabled=”off” button_two_bg_color__hover_enabled=”off”][\/et_pb_button][et_pb_button _builder_version=”4.16″ global_colors_info=”{}” button_text_size__hover_enabled=”off” button_one_text_size__hover_enabled=”off” button_two_text_size__hover_enabled=”off” button_text_color__hover_enabled=”off” button_one_text_color__hover_enabled=”off” button_two_text_color__hover_enabled=”off” button_border_width__hover_enabled=”off” button_one_border_width__hover_enabled=”off” button_two_border_width__hover_enabled=”off” button_border_color__hover_enabled=”off” button_one_border_color__hover_enabled=”off” button_two_border_color__hover_enabled=”off” button_border_radius__hover_enabled=”off” button_one_border_radius__hover_enabled=”off” button_two_border_radius__hover_enabled=”off” button_letter_spacing__hover_enabled=”off” button_one_letter_spacing__hover_enabled=”off” button_two_letter_spacing__hover_enabled=”off” button_bg_color__hover_enabled=”off” button_one_bg_color__hover_enabled=”off” button_two_bg_color__hover_enabled=”off”][\/et_pb_button][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"

What is a Tax-Free Savings Account (TFSA)? TFSAs are much more than a savings account and can create tax-free income in retirement. TFSAs are among the most useful investment and tax-planning tools. They may be effective in income-splitting, gifting and estate-planning strategies.10 Things to know about TFSAs TFSAs are available to Canadians age 18+ The […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"yoast_head":"\nWhat Is A Tax-Free Savings Account (TFSA)? - Desmarais Financial Services | Kitchener, Owen Sound, Toronto, Waterloo<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.desmaraisfinancial.com\/tax-free-savings-account-tfsa\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Is A Tax-Free Savings Account (TFSA)? - Desmarais Financial Services | Kitchener, Owen Sound, Toronto, Waterloo\" \/>\n<meta property=\"og:description\" content=\"What is a Tax-Free Savings Account (TFSA)? 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