What is a Tax Free Savings Account?

TFSA accounts are a flexible registered savings account suitable for Canadians of all incomes. The account can hold any security that is RRSP-eligible. TFSAs can be used as collateral for a loan. Interest on money borrowed to invest in this account is not tax-deductible.

Who Might Benefit from a TFSA

  • Investors new to the workforce
  • People saving for retirement
  • Future home-buyers
  • Income splitters
  • Investors already holding interest-bearing investments in a non-registered account
  • Seniors and those concerned about clawbacks
  • Investors who have maxed-out their RRSP contributions
  • RRIF holders


  • Canadian citizens aged 18 or older may contribute to a TFSA
  • Contribution room automatically accumulates each year, with any unused contribution room carried forward indefinitely for use in subsequent years.
  • There is no tax deduction on contributions


  • Withdrawals are tax free and allowed at any time and for any purpose
  • The total amount of withdrawals can be re-contributed into your TFSA in future years. However, re-contributing in the same calendar year will result in a tax penalty, as it is considered an over-contribution











TFSA Limits

Year TFSA Annual Limit Cumulative Total
2009 – 2012 $5,000 $20,000
2013 – 2014 $5,500 $31,000
2015 $10,000 $41,000
2016 $5,500 $46,500
2017 $5,500 $52,000


Disclaimer – This information transmitted is intended to provide general guidance on matters of interest for the personal use of the reader who accepts full responsibility for its use, and is not to be considered a definitive analysis of the law and factual situation of any particular individual or entity. As such, it should not be used as a substitute for consultation with a professional accounting, tax, legal or other professional advisor. Laws and regulations are continually changing and their application and impact can vary widely based on the specific facts involved and will vary based on the particular situation of an individual or entity. Prior to making any decision or taking any action, you should consult with a professional advisor. The information is provided with the understanding that Harbourfront Wealth Management is not herein engaged in rendering legal, accounting, tax or other professional advice. Any opinion expressed herein is based solely upon the author’s current analysis and interpretation of such information, is subject to change and does not necessarily represent the opinions of Harbourfront Wealth Management Inc. While we have made every attempt to ensure the information contained in this document is reliable, Harbourfront Wealth Management is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is,” with no guarantee of completeness, accuracy, timeliness or as to the outcome to be obtained from the use of this information, and is without warranty of any kind, express or implied. The particulars contained herein were obtained from sources we believe to be reliable, but are not guaranteed by us and may be incomplete. Harbourfront Wealth Management Inc. is a member of the Investment Industry Regulatory Organization of Canada “IIROC” and the Canadian Investor Protection Fund “CIPF”.

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