How a TFSA Works
A TFSA allows you to save and invest without paying tax on the growth. You can withdraw funds at any time, for any reason, without tax consequences. Unused contribution room carries forward indefinitely, and withdrawals are added back to your contribution room the following year.
Key Features
Tax-Free Growth
All investment earnings, interest, and capital gains are entirely tax-free.
Tax-Free Withdrawals
Withdraw funds at any time without paying tax or penalties.
Flexible Contributions
No minimum contribution requirements; contribute when it works for you.
Re-Contribution Room
Withdrawals are added back to your contribution room the following year.
2025 Contribution Rules
* For 2025, the annual TFSA contribution limit is $7,000.
* If you have been at least 18 years old and a resident of Canada since the TFSA was introduced in 2009, your total cumulative contribution room as of January 1, 2025, is $102,000.
Important Deadlines
* Contribution room accumulates each year, even if you do not contribute.
* Unused room carries forward indefinitely.
* Over-contributions are subject to a penalty tax of 1% per month.
Our TFSA Investment Approach
At Rennford, we treat TFSA portfolios with the same discipline and expertise applied to all our investments. Our approach focuses on:
● Growth-Oriented Strategies: Designed to maximize the tax-free growth potential of your TFSA.
● Risk Management: Portfolios balanced to align with your timeline and objectives.
● Real Asset Exposure: Access to high-quality investments in real estate, infrastructure, and businesses.
● Transparent Reporting: Clear, regular updates on your portfolio's performance.
TFSA vs. RRSP: Which Is Right for You?
| Features | RRSP | TFSA |
|---|---|---|
| Tax Treatment of Contributions | After-tax | Pre-tax (deductible) |
| Tax Treatment of Growth | Tax-free | Tax-deferred |
| Tax Treatment of Withdrawals | Tax-free | Taxable |
| Contribution Limit (2025) | $7,000 | $32,490 |
| Best For | Flexible savings, short-to-medium term goals | Long-term retirement savings, high-income years |
| Withdrawal Flexibility | Any time, tax-free | Taxable, subject to withholding tax |