Group TFSAs

Introduced by the federal government in 2009, the TFSATFSA See Tax-Free Savings Account.+ read full definition is a relatively new way of saving. A Group TFSA works the same way as an individual TFSA.

5 things to know about Group TFSAs

  1. All TFSA investmentInvestment An item of value you buy to get income or to grow in value.+ read full definition earningsEarnings For companies, it’s the money they make and share with their shareholders. For investors, it’s the money they make from their investments.+ read full definition are taxTax A fee the government charges on income, property, and sales. The money goes to finance government programs and other costs.+ read full definition-sheltered, but contributions are not tax deductible.
  2. As of January 1, 2018, you (or you and your employer) can contribute up to $5,500 each year. If you don’t contribute the full amount each year, you can carry forward the unused amounts.
  3. You decide how your money is invested from the investment optionsOptions An investment that gives you the right to buy or sell it at a set price by a set date. The buy right is termed a “call” option, and the sell right is termed a “put” option. You buy options on a stock exchange.+ read full definition your employer makes available.
  4. You can take money out when you want, for any reason, without paying any tax.
  5. If you take money out, you can re-contribute it the following year, in addition to the annual maximum.

Learn more about TFSAs.

Caution

While you’ll have a variety of investment options to choose from, you’ll likely have less choice than you would with an individual TFSA.

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