Tax-Free Savings Accounts (TFSAs) are government-approved accounts that allow you to earn tax-free investment income. Annual contributions up to $6,000 are not deductible for tax purposes, and withdrawals and earnings from the account are not taxable. You can hold more than one TFSA.
Unused contribution room in a TFSA can be carried forward to a subsequent year, and withdrawals can also create space in the following year. Full withdrawal amounts can be put back into the TFSA in future years. However, over-contributing in the same year may result in an over-contribution and be subject to a penalty tax.
Income earned, and withdrawals made from a TFSA do not affect eligibility for federal income-tested benefits and credits, such as Old Age Security, the Guaranteed Income Supplement and the Canada Child Tax Benefit.
Funds can be transferred to a spouse or common-law partner to invest in their TFSA. Assets in a TFSA can also be transferred to a spouse or common-law partner upon death.
Earn money without paying taxes.
The TFSA contribution limit is $6,000.
Choose from a wide range of investment options, including mutual funds*, GICs and bonds.
No restrictions on use
Funds can be used at your discretion.
Peace of mind
All deposits are 100% guaranteed by the Deposit Guarantee Corporation of Manitoba.
*Mutual funds are offered through Credential Asset Management Inc. Unless otherwise stated, mutual fund securities and cash balances are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions.