Tax Free Savings Accounts

In order to help make your dreams become a Reality, it’s not only important that I assist you in finding an exceptional home, or sell your home for top dollar amount; sometimes much can be gained by knowing a bit more about what to do to prepare you for the next step. Here’s some great advice on how Tax Free Savings Accounts can help you accomplish some of your goals, and get you that much closer to making your dreams become a Reality.

Even though the Tax Free Savings Account (TFSA) is a “no-brainer” tax-shelter, not every Canadian yet has one. In fact, a shocking 13% don’t know what it is and 37% still don’t understand how they work, according to a survey from ING Direct.

The Tax-Free Savings Account (TFSA) provides Canadian investors with an exciting opportunity to earn tax-free income and to more easily meet lifetime savings needs.

Facts on a Tax-Free Savings Account (TFSA) :

– Tax-free investment income earned in a TFSA
– Tax-free withdrawals from a TFSA
– Can contribute up to $5,000.00 annually to a TFSA if you are a Canadian resident age 18 or older
– Unused TFSA contribution room is carried forward and accumulates in future years
– Can deposit back any amount of withdrawals into the TFSA in future years. However, any over-contribution amount will be subject to a penalty tax.
– Contributions are not tax-deductible
– Examples of investment options: Mutual funds, Guaranteed Investment Certificates (GICs) and Bonds
– TFSA assets can generally be transferred to a spouse or common-law partner upon death
– Can invest in your TFSA with funds given from your spouse or common-law partner

There are a variety of ways the TFSA can be used. You might use yours to supplement your retirement savings, save for a down payment, renovate your home — even take a family vacation. In all cases, your savings will benefit from tax-free growth.

This information has been supplied by one of my many exceptional mortgage specialists Susanna Penning at Oriana Financial 613-371-8076.