Consumer Advisor Log in Français Main navigation Home Investments Insurance Group Benefits Forms & Tools Blog About Us TFSA Tax Free Saving Account Main Content Is a TFSA for you? A Tax Free Savings Account (TFSA) lets you grow your savings and access your money tax-free. Whether you are saving for the short-term or the long-term, a TFSA may be for you. We can put you in touch with an advisor to get you on track Find an advisor How TFSAs work If you are a Canadian resident, 18 or older and have a Social Insurance Number (SIN), you can open a TFSA. You can save up to $6,000 a year, and any unused contribution room is carried over indefinitely. The amount you withdraw is added to your contribution room for the following year. You can open more than one TFSA, but make sure you keep track. The penalty for over-contribution is 1% on the excess amount each month. Eligible investments for TFSAs include cash, guaranteed deposits, segregated and mutual funds, stocks and bonds. Key Features and Benefits Tax-free growth Tax-free growth means you never have to pay taxes on interest, dividends or capital gains from your investments. For example, if you save $5,500 a year over 20 years, it could mean as much as $39,068 more in your pocket. For illustrative purposes only Tax-free withdrawals You can withdraw money from your TFSA at any time, tax-free. And the amount you withdraw is added to your contribution room for the following year. Withdrawals from a TFSA don't affect your eligibility for federal income-tested benefits such as Old Age Security (OAS), Guaranteed Income Supplement (GIS), Canada Child Tax Credit (CCTC), GST Credit, etc. Tax benefits of TFSA vs. RRSP Both a TFSA and an RRSP let your savings grow tax sheltered. So how are they different? With a TFSA, your withdrawals are always tax-free, but you don't get a tax deduction when you contribute With an RRSP, you get a tax deduction when you contribute, but you pay tax when you make withdrawals TFSA RRSP Tax deduction on contribution no yes Tax sheltered growth yes yes Tax free withdrawal yes no Which one works better? Generally, you will come out ahead with a TFSA if you are in a higher tax bracket when you make withdrawals Generally, you will come out ahead with an RRSP if you are in a higher tax bracket when you make contributions Flexible investment choices With Empire Life you have a choice of investments to meet your short and long-term goals: Empire Life Guaranteed Investment Funds offer growth potential and valuable benefit guarantees Empire Life Guaranteed Interest Contracts offer a variety of guaranteed interest options Emblem GIF Portfolio Investing made simple, fast and easy! Get an Empire Life TFSA working for you If you would like to find out more about TFSAs and the investment options from Empire Life, talk to your advisor. Find an advisor QUICK LINKS About Us Careers Investments Insurance Group Benefits Forms & Tools Blog COMPANY Contact Us Legal Privacy Policy Accessibility Consumer Information Empire Life Investments CONTACT US The Empire Life Insurance Company 259 King St. E. Kingston, Ontario 1 877 548-1881 info@empire.ca 8:30 am to 5:00 pm, EST weekdays VISIT US © 2001 - 2021 The Empire Life Insurance Company All Rights Reserved.