💰A TFSA is a tax-free savings account that allows you to grow your wealth without paying taxes on investment income.
📈Investment income in a TFSA can include capital gains, dividends, and interest.
🌟You can contribute up to your maximum contribution room, which is determined by the government and can vary each year.
💵Contributions to a TFSA are not tax-deductible, but withdrawals are tax-free.
📆Unused contribution room can be carried forward to future years.
Who is eligible to open a TFSA?
—Any resident of Canada who is 18 years of age or older and has a valid SIN is eligible to open a TFSA.
What is the maximum contribution limit for a TFSA?
—The maximum contribution limit varies each year and is determined by the government. For 2023, the limit is $6,500.
Can I have more than one TFSA account?
—Yes, you can have multiple TFSA accounts as long as your total contributions do not exceed your maximum contribution room.
Is investment income in a TFSA taxable?
—No, investment income in a TFSA is tax-free, including capital gains, dividends, and interest.
Are withdrawals from a TFSA taxable?
—No, withdrawals from a TFSA are tax-free.
00:00Introduction to TFSA and the benefits of tax-free savings.
03:11Explanation of how to open a TFSA and who is eligible.
05:00Overview of the contribution limits and the concept of carrying forward unused contribution room.
07:15Discussion on the tax treatment of investment income in a TFSA.
09:20Answering frequently asked questions about TFSA eligibility, contribution limits, and taxation.
