Tax-Free Savings Account Overview
You most likely will need to save for many different purposes over your lifetime, and reducing taxes on your savings can help them accumulate. At Edward Jones, we care about your needs today as much as your plans for tomorrow.
Description
A Tax-Free Savings Account (TFSA) is a tax-advantaged account that you can use to save for retirement and other investment goals. Any Canadian resident age 18 or older,* regardless of his or her earned income, may open and contribute to a TFSA.
Objective
An account that lets you save tax free for your long-term investment goals throughout your lifetime.
Suitability
Any Canadian resident age 18 or older regardless of earned income.
Features
- Tax Free — Investment income and capital gains earned in a TFSA are not taxed, even when you withdraw money from the account.
- Eligible Investments — A TFSA can hold any combination of eligible investments, such as stocks, bonds, mutual funds, segregated funds, Guaranteed Investment Certificates (GICs) and cash.
- Contribution Limit — The maximum amount you can contribute in 2009 is $5,000.
- Unused Contribution Room — You can carry forward this amount to future years. In addition, you can re-contribute in a future year any amount withdrawn from a TFSA.
- Impact of Eligibility on Government Benefits — Income earned in and withdrawals made from a TFSA will not affect your eligibility for federal tax credits or income-tested benefits such as the Canada Child Tax Benefit, Old Age Security (OAS) or the Guaranteed Income Supplement (GIS).
- Spousal Contributions — You can make contributions to your spouse's TFSA without concerns of attribution.
- Estate Considerations — You can set up the account’s assets to transfer to your spouse upon your death.
* You must reach age of majority in your province of residence to open an Edward Jones TFSA.
