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Saving is Easy With a Tax-Free Savings Account (TFSA)

What’s the Benefit of a TFSA? Helps you save money that grows tax-free, for short- and long-term goals.


The 2016 annual TFSA contribution limit is $5,500 indexed to inflation and rounded to the closest $500, starting in 2017. If you’ve never contributed to a TFSA, you currently have a maximum accumulated contribution room of $46,500 as of January 1, 2016.

18 years

Who Benefits? ? Anyone with a social insurance number who has reached the age of a majority in their province can open a TFSA.


Both offer tax advantages to help you reach your savings goals. TFSA contributions grow tax- free, while RRSP** contributions are tax deferred until you withdraw the money. The best option for you depends on your personal situation and goals.


TFSA Advantage TFSA Advantage: If you maximize your TFSA contributions for 20 years starting in 2016, and the investment income earned annually is 3%, you could potentially end up with $20,500 more in your pocket than if you had invested the same amount annually in an investment account paying interest at 3% annually**.

TFSA Facts

  • Investments grow tax-free and withdrawals are tax-free.
  • Contributions are not tax–deductible.
  • Any amount not contributed in a year can be carried forward.
  • Amounts withdrawn from your TFSA get added to your TFSA contribution room in the year following the withdrawal.

Contact your MD Advisor to learn how easy it is to save with a TFSA.

* Registered retirement savings plan.

** Assumes the TFSA contribution room in 2016 of $5,500 is indexed for inflation at a rate of 1% annually, rounded to the nearest $500.

Assumes a 45% income tax rate applies to income earned outside the TFSA.

Assumes the investment account earns interest only.

Note: The Canada Revenue Agency (CRA) will allow financial institutions and individuals to act upon the new TFSA contribution limit effective immediately – prior to it passing through Parliament and before receiving Royal Assent.

Registered retirement savings plans (RRSPs) and tax-free savings accounts (TFSAs) are provided by MD Management Limited – Member – Canadian Investor Protection Fund.
MD Financial Management provides financial products and services, the MD Family of Funds and investment counselling services through the MD Group of Companies. For a detailed list of these companies, visit

The information and strategies presented here may not be suitable for U.S. persons (citizens, residents or green card holders) or Canadian non-residents, or for situations involving such individuals. Any tax-related information is based on benefits under the Income Tax Act (Canada) for Canadian residents only. MD Financial Management does not provide taxation, accounting or legal advice or similar professional advice licensed by the United States or other foreign jurisdictions. The information provided is not intended to offer such advice, nor is it intended to replace the advice of independent tax, accounting or legal professionals. Employees of MD Financial Management are not authorized to make any determination of a client’s U.S. status or filing obligations.