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
2016-2018$5,500
2019$6,000
2020$6,000
Total$69,500

TFSA OR 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 otherLower tax rate in retirement: RRSP is preferableHigher 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.

You wish to become a Tradex member ? A Tradex advisor will be happy to help you.