Tax Free Savings Account (TFSA)

October 2008


The TFSA was introduced by the federal Government in February 2008 and became available starting in 2009.

Highlights of the TFSA include:

  • Available to all Canadian residents over 18
  • A standard annual contribution limit of $5,000 regardless of age or income
  • Any unused contribution amounts can be carried forward
  • Any amount can be withdrawn at any time
  • Withdrawn amounts can be re-contributed any time after the year of withdrawal
  • Contributions are NOT tax deductible
  • NO tax is payable on withdrawals
  • Eligible investments are the same as RRSPs, and include deposits held at a credit union

DICO insures all eligible deposits held in each tax-free savings account at a DICO insured institution without a maximum dollar limit.


Further information on the TFSA can be found on the Canada Revenue Agency website.