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
- 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.
- 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.
- 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.
- You can take money out when you want, for any reason, without paying any tax.
- If you take money out, you can re-contribute it the following year, in addition to the annual maximum.
Learn more about TFSAs.
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.