TFSA


TAX-FREE SAVINGS ACCOUNT (TFSA)                                                                                                                                         

  • Allows all of your investments to grow tax-free throughout their lifetime
  • Any Canadian resident age 18 or older with a Social Insurance Number can open a TFSA

  • You can carry forward unused contribution room indefinitely

  • There is no tax deduction for contributing

  • The returns your investments generate (interest, dividends or capital gains) are completely tax free

  • The No-Fee Tradex TFSA allows members to invest in any of the three Tradex Mutual Fund options, or our Tradex Investment Savings account

  • The Canada Revenue Agency will track your contribution room and report this amount through the “My Account” function on the CRA web site

  • Annual contribution limits:
        2009 – 2012: $5,000
        2013 – 2014: $5,500
        2015: $10,000
        2016 – 2017: $5,500
        Total: $52,000

  • TFSA or RRSP?

    TFSA-vs-RRSP

    This table illustrates the after tax return of $36,500 of income earned by an individual who invests for a 25 year period, assuming a 5% rate of return. This example depicts the result of taxation at the same rate, at a lower rate, and at a higher rate during an individual’s retirement years versus their working years.

  • Same tax rate: RRSP and TFSA are identical and no preference should be given to one over the other
  • Lower tax rate in retirement: RRSP is preferable
  • Higher tax rate in retirement: TFSA is preferable

  •   Still not sure which option is best for you? Please contact Tradex to discuss in greater detail which option is best for your individual needs.


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