We're just a few weeks away from the annual RRSP push. This year the TFSA turns 10! And for 2019, the TFSA contribution limit jumps up to $6,000.
A TFSA can hold much the same investments as an RRSP, and there are advantages to both. Contributions to an RRSP are tax deductible, TFSA contributions are not. A TFSA earns investment growth and interest tax-free - in an RRSP tax is deferred. RRSP withdrawals have tax consequences - TFSA withdrawals don't.
Don’t have a TFSA yet? Check with your financial institution to see if there are any administration fees to know about.
TFSA's are fairly straight forward investment vehicles. Find out more at www.cra-arc.gc.ca/tx/rgstrd/tfsa-celi/menu-eng.html.
Timely Tip – use any tax refund, generated by your RRSP contribution, to open a TFSA. Save, and then save some more!