The latest tool in Canadian tax-advantaged investments, TFSAs was introduced in 2009 as an investment vehicle for Canadians to grow savings and earn tax-free investment income. It is available to all residents of Canada (age 18 and older) with a valid SIN.
Features
- TFSA contributions are not deductible by tax.
- Investment return is tax-sheltered.
- Like RRSPs, unused contribution can be carried forward and used in the future.
- The type of investment fund is your choice, with options varying from Mutual Funds*, Segregated Funds, Guaranteed Investment Certificates (GICs) to Bank Savings Account.
*Mutual Funds license sponsored by Shah Financial Planning Inc.
Head Office: 3459 Shepperd Avenue East, Suite 204, Scarborough ON, M1T 3K5
Telephone: (416) 298-4900
Fax: (416) 298-9759
Website: www.shahfinancial.ca
Over-Contributions
If you over contribute to the TFSA account, you are subject to a 1% tax on the highest excess amount per month.
A TFSA account limit is $5,500.
Ex.
January contribution: $3,500
February contribution: $1,000
March contribution: $1,500
In this case, an excess contribution of $500 was made in March.
Tax = 1% * $500* 10 months (March – December) = $50
In this particular case, $50 of taxes would have to be paid.
Disclaimer: Insurance, Investment and Mortgage products & services are provided by Devangkumar Shah.
Mutual Funds license sponsored by Shah Financial Planning Inc.
Lotus Loans and Mortgage ltd. is the principle mortgage broker.