Tax Free Savings Account (TFSA)

TFSAs

The Tax Free Savings Account (TFSA) was announced in the 2008 federal budget, providing Canadians with a new way to save their money. In fact, it's the single most important personal savings vehicle since the introduction of the Registered Retirement Savings Plan (RRSP). A TFSA is a flexible registered savings vehicle that can complement your RRSP.

Members were able to contribute up to $5,000 annually to their TFSA and unused contribution room is carried forward year after year. The new annual maximum, introduced in 2013 is $5,500, That means if you haven’t contributed to a TFSA yet, your maximum contribution amount in 2013 is $25,500. More flexible than an RRSP, gains made are not taxed upon withdrawal, making the TFSA attractive to those who want to save but may need the funds before retirement (in addition to retirement, think education, vacation, renovations, vehicle).

TFSA Highlights

  • available to all Canadian residents 18 years of age or older.
  • annual limit of $5,000 in 2009 through 2012 and 5,500 in 2013
  • any unused contributions may be carried over to the following year(s), with no lifetime contribution limit.
  • the TFSA contribution limit is in addition to RRSP limits.
  • contributions are not tax deductible, however the earned income with your TFSA is accumulated tax-free.
  • withdrawals are allowed anytime, are not taxable, and amounts withdrawn may be contributed at a later date without affecting your annual contribution.
  • contributions to a spouse's TFSA is allowed and transfer of contributions to a spouse are allowed upon death.
  • to help you keep track of your contribution eligibility, the Canada Revenue Agency will report your contributions and eligibility on your yearly income tax assessment.
  • excess contributions are subject to a 1% tax per month on the excess that remains in the plan.

Getting Started

Sunshine Coast Credit Union has two ways for members to take advantage of the TFSA:

  1. High Interest Savings Account -Set up automated pre-authorized contributions into the account and watch your savings grow quickly - and tax-free!
  2. Term Deposits - If you have $1,000 or more to invest in a TFSA, choose from our competitive line of non-redeemable term deposits, conveniently ranging from 1 to 5 years.

Visit us in-branch today to discuss your options with our knowledgeable staff. In the meantime, visualize your savings! Visit the Government of Canada's website calculator and see just how much you can save with a TFSA.

 

Find Branch/ATM

Enter address, postal code or branch name