Tax-Free Savings Account (TFSA)

Tax-free savings accounts (TFSAs) are a relatively recent option to Canadians’ financial planning menu, and it’s one we think could fit into many plans.

A TFSA is a flexible registered savings account that allows you to earn income in a tax-free environment. Annual maximum contributions are $5,500 per person.  Unused contribution room is automatically added to your lifetime unused room, penalty-free.

Some ways a TFSA differs from an RRSP

  • Unlike an RRSP, a TFSA uses after-tax dollars
  • No tax will be payable when you withdraw funds
  • Withdrawals will not affect income related government benefits such as OAS

Advantages of the Reuter Benefits TFSA

  • Competitive investment management fees
  • No front-end or back-end loads
  • Contributions will be taken from your bank account directly into your TFSA with Manulife Financial
  • Assistance at enrolment and ongoing support from Reuter Benefits staff

Who may be interested in a TFSA?

  • Individuals who have utilized their full RRSP room or have little RRSP room
  • Individuals concerned that their expected retirement income will reduce or eliminate income-tested government benefits
  • Couples saving for a down payment on a house or their children’s post-secondary education
  • Individuals or families saving for a significant purchase such as a car or a dream vacation
  • Retirees over age 71 who can no longer invest in RRSP’s