Tax Free Savings Account

Tax Free Savings Account

The  Tax-Free Savings Account (TFSA) is a flexible, registered general purpose savings vehicle that allows Canadians to earn tax-free investment income to more easily meet lifetime savings needs. Contributions are not tax-deductible.

 

The TFSA complements existing registered savings plans like the Registered Retirement Savings plans (RRSP) and the Registered Education Savings Plans (RESP).

 

Features of this new registered product:

  • Available to New Brunswick residents age 19 and older
  • Accumulate contribution room starting at age 18
  • Contributions are not tax deductible
  • Contributions may only be made by the owner
  • Income earned and capital gains under a TFSA are tax sheltered
  • Withdrawal of contributions and/or income are not be subject to tax
  • Maximum contribution limit is $5500 (for 2016)
  • Unused contribution room may be carried forward and contributed in a future year
  • Withdrawals (capital and income) increase the unused contribution room

 

OMISTA Credit Union offers a choice of Tax-Free Savings Accounts. Visit your nearest branch or contact us for more information.

 

Looking for more ways to save tax? Visit our Investing section to learn more about Retirement planning and RRSPs.

 

 

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