Tax-Free Savings Account

Regardless of what you are saving for - a car, house, vacation or your retirement - take advantage of the benefits of a Tax-Free Savings Account (TFSA).

To find out more about how a TFSA can fit into your financial plan, speak to your advisor.

Regardless of what you are saving for, a Tax-Free Savings Account (TFSA) is a great way to save for any financial goal: a long-term goal such as retirement or a short-term goal such as a car or a vacation.

TFSAs allow Canadians to save up to $5,500 per year on a tax-exempt basis. They can hold many different types of investments, including all Fidelity funds.

Any Canadian resident with a social insurance number who has reached the age of majority in their province can open a TFSA.*

To find out more about how a TFSA can fit into your financial plan, speak to your advisor.

TFSAs compared to RRSPs

  TFSAs RRSPs
Contributions Not tax-deductible Tax-deductible
Withdrawals Tax-free – Withdrawals are added to contribution room effective the following year Taxed – Withdrawals are final and are not added to contribution room
Earned income requirement for contribution room Contribution room is not based on earned income Contribution room is based on earned income
Age requirement for conversion/collapse There are no conversion requirements for TFSAs An RRSP must be converted to a Registered Retirement Income Fund (RRIF) or annuity at age 71
Attribution rules

Attribution rules do not apply. Money may be given to a spouse to contribute to the spouse’s own TFSA

Attribution rules may apply to withdrawals from a spousal RRSP under certain conditions
Eligible investments Mutual funds, stocks, bonds and all investments currently permitted in RRSPs

* In British Columbia, Newfoundland and Labrador, Nova Scotia and New Brunswick the age of majority is 19 and a TFSA may not be opened until then. However, you will accumulate contribution room from the time you are 18.

For more information about TFSAs

Call us at 1 800-263-4077 (toll free) or 416 307-5200. Fidelity representatives are available to speak to you from 8:00am to 8:00pm EST, Monday to Friday.

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