Many Canadians have utilized the tax-free benefits of the Tax-Free Savings Account since it rolled out in 2009 — but others have yet to do so.
As a refresher, within a TFSA, you have the flexibility to invest in similar securities as you would in your Registered Retirement Savings Plan or non-registered investment account. Canadians can grow their investments and savings much faster because income and growth from a TFSA are completely tax-free.
A Portfolio Manager has the discretion to do trades within an investment account; however, we do not have the discretion to move money between accounts. It is for this reason we will always have a discussion with clients and obtain an understanding of the method in which they authorize us to fund their TFSA accounts.
If contributions have always been maximized, and there were no 2024 withdrawals, then the amount to contribute in 2025 is easy — it is $7,000.For clients who have a non-registered investment account, cash or securities can be transferred from the non-registered account into their TFSA. Before the TFSA, if clients did not need the RRIF withdrawal for cash flow reasons, it was typically advised to defer the RRIF payment until later in the year.
As TFSA accounts have grown, the need for diversification within the account has grown as well. Historically, we have invested in individual Canadian equities in the TFSAs. When the TFSA was smaller, we avoided foreign equities. The reasoning behind this is that dividend income from a foreign country paid into a TFSA could be subject to foreign withholding tax.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
RDSPs a 'no-brainer' savings tool for people with disabilities, but awareness lackingLike a Registered Retirement Savings Plan, the Registered Disability Savings Plan is a long-term savings account where contributions grow tax-free until withdrawal.
Read more »
24YO Refuses Family's Request To Access Her Savings Account, They Get Mad At HerMom pressures hard-working and generous 24YO daughter to give full access to her savings account, she flatly refuses.
Read more »
Daughter Refuses to Share Savings Account with MotherA 24-year-old woman is facing family conflict after refusing her mother's request for full access to her savings account. Despite her history of financial support for relatives, the daughter is hesitant to relinquish control over her hard-earned funds. Her mother accuses her of being selfish, while her sister suggests she is overreacting and needs to help her family.
Read more »
Daughter Refuses to Give Mother Full Access to Savings AccountA 24-year-old woman is facing family conflict after refusing her mother's request for full access to her savings account. While the daughter has always been financially supportive of her relatives, she doesn't want to relinquish control over her hard-earned money. The mother accuses her daughter of being selfish, claiming she needs access 'just in case something big happens.' The daughter's sister advises her to be more understanding, but the woman remains torn between her desire to help her family and her fear of losing control over her finances.
Read more »
24YO Refuses Family's Request To Access Her Savings Account, They Get Mad At HerA woman decided to stand her ground when her family asked to access her savings account, leading to anger and conflict.
Read more »
Tax Holiday Confusion: Retailers Struggle to Apply Toy Tax ExemptionsDespite a federal tax holiday aimed at providing relief to Canadian families during the holiday season, some retailers are struggling to correctly apply exemptions for children's toys.
Read more »