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Tax-Free Savings Account (TFSA)

Grow your savings alongside the flexible advantage of being able to access your money on your terms.


Whether you’re saving for a home, or if unexpected expenses come up, at Thom & Associates, we’re here to help you invest wisely in an account that doesn’t tax the growth on your money.

A retired couple dancing close and smiling

What is a tax-free savings account?

A tax-free savings account (commonly referred to as a TFSA) is a remarkably tax-efficient way for Canadians to increase their wealth.


Don’t let the name fool you, a TFSA is not your typical savings account. Think of it more as an investment account where your money can grow without you being charged tax on the earnings, even when it is withdrawn.


Whether you have short-term goals like saving for a vacation or new vehicle, or you’re looking further ahead into retirement, a TFSA is a versatile way to save for your future.

Top 3 reasons to open a TFSA


Freedom &

The prime benefit of contributing to a TFSA is that you’re able to withdraw and spend your money without penalty. Meaning that you can use your money for what you want, when you want.


Contribution Room

When you decide to take money out of your TFSA, the amount you withdraw will be restored as contribution room for the following year so you can recontribute without any penalties.


Easily Access Your Money, Tax-Free

While your money is growing in a high-interest savings account,

you can still take it out,

tax-free whenever you need it.

How does a tax-free savings account work?

  • Anyone who’s reached the age of majority (19 in BC) with a valid Social Insurance Number, can open a TFSA. Book an appointment with an advisor to get started.

  • Grow your savings with monthly deposits but be sure to stay within the yearly limits (continue reading to learn more about contribution limits).

  • Your investments continue to grow tax-free as you build towards your savings goals.

  • Once you’ve reached your goal or if an unexpected cost comes up, you can withdraw your money, tax-free.

  • After you take money out, in the following year, your contribution room is restored which allows you to deposit more without penalty.

  • What happens if you don’t deposit into your TFSA for a year or more? Your contribution room will continue to roll over and grow into the next year.

Why do we recommend opening a TFSA?

You can access your money - whenever you need it


Whether you’re saving for a rainy-day or retirement, you can easily withdraw your money on your terms.

It grows alongside you


Once you turn 18, your TFSA contribution room grows each year. Any unused room rolls forward, and unlike an RRSP, there’s no maximum age to have a TFSA.

Get the most from your saving strategy


With a TFSA, you aren’t taxed on the interest you earn in that account. Meaning that every single dollar you deposit grows tax-free and anything you withdraw comes out tax-free as well.

No minimums or fees


A TFSA doesn't require a minimum balance to open an account. Plus, there’s no set-up or monthly fees, as well as no fees to deposit or withdraw your money.

Safe investment choices


At Thom & Associates, when you open a TFSA, your money is eligible for deposit insurance through the Canadian Deposit Insurance Corporation (CDIC).

Take out & add back


The amount of money you withdraw from your TFSA is added to the amount you can deposit the following year. Essentially, you’re able to re-contribute what you previously took out.

Is opening a TFSA the best choice for you?

It’s an excellent option if you:

✔ Are saving for something in particular, like a down-payment for a house or to pay for a wedding.

✔ You like being able build your savings, but also want the option to access your cash in a quick and simple way.

✔ Are over 18 (19 in BC), but aren’t earning enough to gain from RRSP tax breaks.

✔ You want to grow your savings in a tax-efficient way while still having access to your money in case of emergencies.

✔ Are looking for an investment account to compliment your RRSP.

How much money can you put in a TFSA?

Did you know there’s a specific amount you can deposit into your TFSA each year? Determined by the Canada Revenue Agency (CRA), the amount of contribution room available (amount you can deposit without penalty) rolls over from year to year. This means that you can continue adding money to your TFSA as your total contribution room grows annually.

TFSA Contribution Limits

Once you turn 18, your TFSA contribution room starts building and continues growing each year. The annual limit for 2022 is $6000. Below are the annual TFSA limits since 2009, when the TFSA was first introduced:

How does the TFSA contribution limit work in real life?

In 2022, the annual contribution limit is $6000. If you were 18 years old or older in 2009 and never contributed to a TFSA before, the total amount of contribution room available to you in 2022 would be $81,500. When you take money out of your TFSA, that amount will be added back to your contribution room the following year.

Start saving today. Get in touch.

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