Tax-Free Savings Account (TFSA)

Set a goal and start saving for it—with a TD GoalAssistTM TFSA.


Account Highlights

With a TD GoalAssist TFSA1, you'll have the power to select investments and build your plan

  • You can build your investments tax-free
    A tax-efficient way to build your account through investment growth, dividends, or interest.
  • Pay no tax on withdrawals
    Withdraw your money at any time3 without incurring tax.
  • Catch up on unused contribution room
    Carry unused contribution room forward into future years.

TFSA vs. RRSP

Whether you're saving for retirement, homeownership or education, RRSPs and TFSAs can help. Review our comparison chart to understand the differences.

TFSA

Primary purpose

Investing for a goal

Annual contribution limit

$6,0004 PLUS amounts accumulated or withdrawn in previous years5

Contributions

Not tax-deductible

Unused contribution room

Carried forward

Growth

Tax-free

Withdrawals

You’re not taxed on withdrawals

Withdrawn amounts

Added to contribution room in future years

Primary purpose

Retirement

Annual contribution limit

18% of previous year’s earned income (maximum limits apply), less pension adjustments

Contributions

Tax-deductible

Unused contribution room

Carried forward

Growth

Tax-deferred

Withdrawals

Funds that are withdrawn are charged a prescribed withholding tax at the time of withdrawal, but will be ultimately taxed as income at your marginal rate. This may affect government benefits such as old age security.

Withdrawn amounts

Contribution room is lost for amounts you withdraw

There's more than one way to invest in your TFSA

  • Stocks
    Invest in selected shares from companies listed on six North American exchanges.
  • TD ETFs
    The TD ETF (Exchange-Traded Fund) lets you invest in a collection of securities across different geographic regions or industries based on specific investment strategies

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