TFSA (Tax-Free Savings Account)

Like the RRSP, a TFSA gives you a flexible and tax-effective way to accumulate savings – especially short-term savings – without using up your valuable RRSP contribution room.

So many ways to use tax-free savings

  • Choose from the full range of low-cost investment options available within the plan.
  • You can carry forward any unused contribution room from year to year.
  • Make direct contributions from your bank account through the bill payment option. Search for “Canada Life Group TFSA” in the bill payments section of your bank’s website. (Please Note: Some banks may still be listing “Great-West”). Enter your plan number 62724 and certificate number (without spaces) to create the account number.
  • The 2024 contribution amount is $7,000. This amount can change from year to year.
  • The total room available in 2024 for someone who has never contributed and has been eligible for the TFSA since its introduction in 2009 is $95,000.

Major Events

Plan for major events like a house down payment, continuing education or unforeseen expenses.

Supplement RRSP

Supplement your registered retirement savings plan (RRSP) once you’ve maxed-out RRSP contributions or you need to fill your retirement income gap.

Additional Healthcare

Purchase health or long-term care plans if you don’t have them in retirement.

Amusement

Save extra money to pursue hobbies and travel in retirement.

Resources

Forms:
Get all TFSA-related forms at mycanadalifeatwork.com > Sign in> Select Change your portfolio> Printable forms

TFSA TAX TIPS:

  • Although your contributions are made with after-tax dollars, you do not pay taxes on investment growth or plan withdrawals (whether it’s before or during retirement).
  • If you withdraw money from your TFSA, you get your contribution room back, which makes the TFSA an ideal vehicle for managing your short-term cash-flow needs.
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