To open a Home Trust TFSA, please contact the Deposit Department at
1-877-903-2133 x 5055 or email us at firstname.lastname@example.org.
Where no instructions are received investments will automatically renew for the same terms and conditions at the prevailing interest rates.
A Tax-Free Savings Account (TFSA) is a new kind of registered account recently announced by the federal government. Through a TFSA, you can put your savings into eligible investments and not pay tax on the investment income you earn.
TFSAs are available to every Canadian resident who is 18 years of age or older and has a Social Insurance Number (SIN).
If you live in British Columbia, Newfoundland and Labrador, Nova Scotia or New Brunswick, then you cannot open a TFSA until you are 19, which is the age of majority in those provinces. However, you will accumulate contribution room from the time you are 18.
As of January 2, 2009, you will be able to open a TFSA through Home Trust Company.
At Home Trust Company, you can invest in our 1-5 year term deposit (GIC) in your TFSA.
Yes, TFSA is insured. TFSA falls into the category of regular GICs.
As of January 2, 2009, you can contribute up to $5,000 a year to your TFSA. However, that contribution limit is indexed to inflation, which means that your contribution will increase with the cost of living.
You can carry forward any uncontributed amounts into future years indefinitely. So, for example, if you contributed only $2,000 in 2009, in 2010, you could contribute up to $8,000 (the $5,000 limit for 2010, plus the $3,000 you had left over from 2009).
If, in 2010, you had only $5,000 to contribute, you could carry the $3,000 left over from 2009 to 2011 and on through the years until you use it.
Every year, the government will calculate how much TFSA contribution room you have available. You will be informed of your contribution limit when you receive your T1 Notice of Assessment.
If you contribute more than your contribution limit, you will pay a penalty of 1% per month on the excess amount.
No, you cannot contribute directly to your spouse’s TFSA as you can with a spousal RSP. However, you can give your spouse money, which he/she can then contribute to his/her own TFSA. Any income your spouse earns on the money in his/her TFSA is his/her income and will not be attributed back to you.
You can withdraw funds from your TFSA any time you want – you do not have to reach a certain age before you withdraw your money. Since our product is annual GIC only, you can withdraw when your GIC matures.
No, you don’t have to pay tax on the amounts you withdraw. Because TFSA withdrawals do not count as taxable income, they do not affect Federal income-tested benefits or tax credits you may receive, including the Canada Child Tax Benefit, the Working Income Tax Benefit, the Goods and Services Tax Credit and the Age Credit. TFSA withdrawals also will not reduce benefits based on your income level, such as Old Age Security, the Guaranteed Income Supplement and Employment Insurance benefits.
No, you never lose your contribution room – in fact, you can re-contribute amounts you have withdrawn. You have to wait until the next year to re-contribute, but you can carry forward the re-contribution room indefinitely.
For example, say you contribute $5,000 to your TFSA in January 2009 and another $5,000 in January 2010. Then, in January 2010, you withdraw $3,000 to pay for some repairs to your home. You cannot re-contribute that $3,000 in 2010, but in 2011 it will be added to your contribution room again, meaning you could contribute up to $8,000 in 2011.
No. Whenever your TFSA GIC matures, you can redeem and use the funds for anything you choose.
No, you do not pay any tax on the investment income you earn in the account, and you do not pay income tax on the amounts you withdraw.
A: No, you cannot deduct contributions to your TFSA from your income as you can with your RSP contributions.
Note: The above information about the Tax-Free Savings Account is based on the information currently available from the Canadian federal government. To learn more or to check for updates, visit the TFSA information page on the Canada Revenue Agency website.
To register for your TFSA, contact us at:
Home Trust Company
145 King Street West, Suite 2300,
Toronto, ON M5H 1J8,
or consult your agent.