Well TFSA in Brampton is a specific type of account where you can set money aside in eligible investments. These investments could be exchange-traded funds, stocks, bonds, and much more. You can choose any option and it can be a combination as well. As you invest in the account the interest, dividend and capital gains that you earn would be tax-free for life. You can withdraw at any time you can and the withdrawn amount would also be tax-free. There is an annual contribution limit in the account and as per the latest update, you can contribute up to $6000 (2020). If you over contribute to your account, a 1% tax would be imposed on the excess contribution.
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What to know about TFSA?
What is a TFSA?
Anyone who is 18 years old and above can open this account. You can withdraw the funds at any time and use them on anything. You can use it for emergency expenses, for education or for a vacation- the choice is yours.
The contribution limit for TFSA is not prorated in a year if the account holder
- Is turning 18 years
- Becoming a resident or a non-resident of Canada
- Or passes away.
Get in touch with Rupinder Rai for further details.
What happens to my TFSA account when I die?
In the case of your untimely death, if you have nominated a beneficiary for your TFSA account that the amount would be transferred to their account. This holds the same for partner, spouse, and children if there is no successor holder. The amount would remain sheltered from taxes.
However, at the time of your passing away if your TFSA account had excess contributions and if the same amount is transferred to another’s TFSA account, they will have to pay the 1% tax on the excess contribution.
TFSA vs RRSP
Although you can contribute more towards your RRSP account within a financial year, the contributions that you make are tax-deductible when you withdraw which makes TFSA in Brampton a better investment option. Also, withdrawals cannot be re-contributed in subsequent years.
All-in-all TFSA in Brampton can help you save for your future, achieve your financial goals faster, and assists you in avoiding a financial crisis. You can consult with Rupinder Rai before you open an account. She can advise you on what to and how much to invest so it doesn’t create a financial strain on your monthly budget.