Tax Free Savings Account
Saving for your future goals, like a trip, a home, or retirement? The Tax-Free Savings Account (TFSA) can help. This flexible registered account allows you to put money in a variety of eligible investments – and reap earnings from those investments tax free.
A smarter way to save for your future
Let your assets grow, tax free
Withdraw funds, tax free
TFSA withdrawals can be made at any time, for any purpose, and are tax free. In addition, amounts withdrawn from your TFSA are added back to your contribution room for the next year.
No age limit on contributions
You can contribute to and maintain your TFSA for as long as you like. Unlike RRSPs and FHSAs, there is no requirement to withdraw assets or collapse your account by a certain age.
TFSA Basics
- The TFSA is a registered account that allows Canadians to save and invest tax free.
- You can open a TFSA if you are:
- a Canadian resident with a Social Insurance Number
- at least 18 years old
- For a given year, your TFSA contribution room is the total of:
- your annual TFSA contribution limit
- any unused contribution room from the previous year
- any withdrawals made from your TFSA in the previous year
- Like FHSAs and RRSPs, a tax on overcontributions to a TFSA would apply for each month (or part-month) that the account is over the limit. The tax applies at the rate of 1% of the highest amount of the excess that existed in that month.
- TFSA contributions are made with after-tax income, which means that any withdrawals are non-taxable.
- Withdrawals from your TFSA can be made any time. Amounts withdrawn are added back to your contribution room for the next year.
- Unlike RRSPs, there is no maximum age for a TFSA.
How you invest is up to you
A self-directed TFSA allows you to choose and manage your own investments within the account. You can buy and sell stocks, bonds, GICs, and other securities, giving you greater control over the investment options and potentially greater returns.
What's the best account option for me?
| FHSA | TFSA | RRSP |
| A registered account that allows prospective first-time home buyers to save for a down payment on a tax-free basis | A versatile and flexible registered tax-free investing account. | A tax-deferred registered retirement account |
| Annual Contribution Limit: $8,000 | Annual Contribution Limit: $7,000 | Annual Contribution Limit: 18% of the previous years' income, up to $30,780 |
| Contributions are tax-deductible and qualifying withdrawals are tax-free | Withdrawals are tax-free | Contributions are tax deductible. Withdrawals (except in the case of the Home Buyer’s Plan or Lifelong Learning Plan) are subject to withholding tax |
Annual contribution deadline: December 31 |
Annual contribution deadline: December 31 |
Annual contribution deadline: February 29 Learn more about RRSPs |
Open a Qtrade TFSA
- To set up an TFSA, complete the application to open a Qtrade TFSA account.
- If you have an existing TFSA account, it can be transferred from one provider to another without tax consequences. The transfer process involves opening a new TFSA account with Qtrade and initiating a transfer request from the existing account.
- You can open a TFSA if you are: a Canadian resident, have a Social Insurance Number, and are the age of majority in your province.
Frequently asked questions
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You can open a TFSA if you:
- are a Canadian resident
- are at least 18 years old
- have a Social Insurance Number
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For a given year, your TFSA contribution room is the total of:
- your annual TFSA contribution limit
- any unused contribution room from the previous year
- any withdrawals made from your TFSA in the previous year
If you have multiple TFSAs, your combined contributions to all of them cannot exceed your available contribution room for the current year. If you have never contributed to a TFSA, and you were at least 18 years old and had a valid Social Insurance Number in 2009, then as of 2024 you have accumulated $95,000 in contribution room.
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Withdrawals from your TFSA can be made any time, and are tax free. Amounts withdrawn are added back to your contribution room for the next year.
Since earnings in your TFSA and withdrawals from it are not included as income for tax purposes, they don’t impact your eligibility for Old Age Security, or for any other income-tested federal benefits.
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No, a TFSA is an individual account.
Online brokerage services are offered through Qtrade Direct Investing, a division of Aviso Financial Inc. Qtrade and Qtrade Direct Investing are trade names or trademarks of Aviso Wealth Inc. and/or its affiliates.
Aviso Wealth Inc. ('Aviso') is a wholly owned subsidiary of Aviso Wealth LP, which in turn is owned 50% by Desjardins Financial Holding Inc. and 50% by a limited partnership owned by the five Provincial Credit Union Centrals and The CUMIS Group Limited. The following entities are subsidiaries of Aviso: Aviso Financial Inc. (including divisions Aviso Wealth, Qtrade Direct Investing, Qtrade Guided Portfolios, Aviso Correspondent Partners), and Northwest & Ethical Investments L.P.
The information contained in this article was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete. This material is for informational and educational purposes, and it is not intended to provide specific advice including, without limitation, investment, financial, tax or similar matters. Information, figures, and charts are summarized for illustrative purposes only and are subject to change without notice. All investments are subject to risk, including the possible loss of principal.