A Tax-Free Savings Account (TFSA) is designed to help you save for your short and long-term goals. This is different from an RRSP that is considered a longer-term strategy to save for retirement. A TFSA may be a good option for you to consider if you have shorter-term goals where you want to access and more easily withdraw funds.
TFSA contributions are not tax deductible as they are with an RRSP. However, the contributions and the gains made can be withdrawn tax-free at any time. They are flexible in that you are allowed to ‘refill’ your account with no penalty. For example, If you do make a withdrawal, that amount of room is added back the following year. As the amount you can contribute is adjusted annually, you can top up from unused room you have carried forward and the value of the withdrawals.
At CCEC, we are pleased to offer this new savings option to our members. It is considered a retirement savings option by CRA and has terms and conditions. We ask our members to contact or look at your MY CRA account to find out how much room you have available. In addition to the rules governed by CRA, at CCEC we’ve also set a minimum contribution at $500.
Contact us to learn more and to open a TFSA account. We can review your needs and suggest what might work best for you from the range of investment strategies we are now able to offer.
For more information visit the CRA website