Building and preserving wealth together.


Tax Free Savings Account | TFSA

Canadians need to save for many different purposes over their lifetimes. Reducing tax on savings can help. That is why the Government has introduced the Tax-Free Savings Account (TFSA) in 2009. It is the single most important personal savings vehicle since the introduction of the Registered Retirement Savings Plan (RRSP).

The TFSA allows Canadians to set money aside in eligible investment vehicles and watch those savings grow tax-free throughout their lifetimes. Your TFSA savings can be used for any purpose, such as maximizing your savings in a tax free environment or to purchase a new car, renovate a house, start a small business or saving to take a vacation. Canadians from all income levels and all walks of life can benefit.

How the TFSA Works

  • Individuals who are 18 and older, and have a valid SIN, are eligible to save and set money aside tax-free throughout their lifetime.
  • Contributions into your Tax Free Savings Account accumulate and earn interest in a tax-free environment, income earned and capital gains in your TFSA are not taxed, even when it is withdrawn.
  • Your contributions to a TFSA are not deductible for income tax purposes
  • Your unused TFSA contribution room is carried forward and accumulates for future years.
  • You can withdraw funds available in your TFSA at any time for any purpose — and the full amount of withdrawals can be put back into your TFSA in future years. Re-contributing in the same year may result in an over-contribution amount which would be subject to a penalty tax.
  • Neither income earned in a TFSA nor withdrawals affect your eligibility for federal income-tested benefits and credits.
  • You can provide funds to your spouse or common-law partner to invest in their TFSA.
  • TFSA assets can generally be transferred to a spouse or common-law partner upon death.

TFSA Limit or Contribution Room


Annual TFSA Limit

Accumulated TFSA Contribution Room














*The TFSA annual room limit will be indexed to inflation (in future years) and rounded to the nearest $500. For example:  2017 CPI of 1.6% would result in $5,500 + $88 = $5,500 Annual TFSA Limit or $57,500 Accumulated TFSA Contribution   

Room for 2018 Limits.

Updated: Fall 2017

Investment income earned by, and changes in the value of TFSA investments will not affect your TFSA contribution room for the current or future years.

Global Pacific represents Financial Institutions including Banks, Credit Unions and Insurance Companies offering TFSA’s in the form of High Interest Accounts, GIC’s, Investment Funds, Segregated Funds, Equity Linked GIC’s and more.

To open a TFSA, contact our office or your Advisor today!