Skip to content
  •   4037037176
  •   sharon@calgarychoicetaxservices.com

Calgary's Choice Tax Services

Bringing Clarity To Your Taxes

Menu
  • Calgary’s Choice tax Services
  • About us
  • Personal Taxes
  • Sole Proprietors and Taxes
  • Divorce and Taxes
  • Contact
  • F.A.Q’s
  • Tax Resources and Forms
  • Sharon’s Tax Tips

Do You Understand the Benefit of a TFSA?

January 24, 2018
No Comments

Do You Understand the Benefit of a TFSA?

Many Canadians still don’t understand the benefits of a TFSA. MoneySense Magazine reported that only 1 in 5 Canadians can truly explain a TFSA.

This acronym stands for Tax Free Savings Account; many of us believe that the government should have more appropriately named it the Tax Free Investment Account. The latter may have made it easier to understand the purpose of this savings vehicle. It is intended to enable Canadians to shelter investment income (dividends, capital gains and interest). Simply parking money in this account, much like a bank account, won’t earn you much, if anything at all.

A TFSA allows you to set money aside in eligible investments and watch those savings grow tax-free throughout your lifetime. Interest, dividends, and capital gains earned in a TFSA are tax-free. TFSA savings can be withdrawn from your account at any time, and all withdrawals are tax-free. There are limits on annual TFSA contributions which are the same for all taxpayers.

Taxpayers should work with their Tax professional and/or Financial Advisor to determine if a TFSA should be an essential part of tax/retirement planning and whether TFSA contributions should take priority over RRSP contributions.

If you would like a consultation or have questions, please contact us at (403)703-7176 or email us at Sharon@CalgarysChoiceTaxServices.com.

 

Tags: canada revenue agency, contributions, cra, divorce taxes, income tax, myaccount, revenue, tax free savings account, tax returns, taxation, taxes, taxes canada, tfsa

Post navigation

WHAT’S THE VALUE OF YOUR MARRIAGE?
CRA Services You Might Not Know About

Articles

  • Most Wonderful Time Of Year December 1, 2020
  • Charitable Giving More Important Than Ever November 16, 2020
  • Working At Home? You Might Be Able To Claim Home Office Expenses May 3, 2020
  • The CERB and Income Tax April 9, 2020
  • Have You Gone Digital? You could save on Taxes! February 4, 2020

Categories

  • Business
  • CRA
  • insurance
  • Investment
  • Marriage
  • real estate
  • refund
  • RRSP
  • Tax
  • Taxes
  • tfsa
  • Uncategorised
Designed by WK Creations