2016-12-11 00:00:00 Taxes English Find out how to save and grow your money in a tax-free savings account, and learn how to use a TFSA to grow surplus funds from your... https://d1bkf7psx818ah.cloudfront.net/wp-content/uploads/2017/10/08213840/business-owner-moves-money-to-tfsa.jpg Make the Most of Your TFSA

Make the Most of Your TFSA

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Launched in 2009, the tax-free savings account is a registered account that allows eligible individuals to put money aside, up to the annual TFSA contribution limit. Contributions to a TFSA are taxed, but the earnings in the account are tax-free.

For example, assume you contributed $1,000 to your TFSA and used the money to buy a stock at the beginning of the year. The price of the stock increases ten-fold, and you now have $10,000 in your TFSA. If you sell the stock and withdraw the $10,000 from your TFSA, you don’t have to pay tax on it.

Instead of leaving surplus funds in their businesses, small business owners can put the money in a TFSA and let the money grow until they need it. They can also use a TFSA to build up their retirement savings.

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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