Insurance & Investment Solution 
French 
Started in 2009, the Tax-Free Savings Account (TFSA) lets individuals save money tax-free throughout their lifetime. Contributions aren’t tax-deductible, but withdrawals are tax-free.
- Individual resident of Canada.
- At least 18 years old and not turning 72 in the current year.
- First-time home buyer with specific residence history criteria.
- Lifetime contribution limit: $40,000.
- Annual contribution limit: $8,000 (subject to lifetime limit).
- Carry forward up to $8,000 of unused annual contribution.
- Multiple FHSAs allowed, but total contributions capped.
- Deductions applicable against taxable income.
- Contributions not claimed can be carried forward indefinitely.
- Income and capital gains in FHSA not included in annual income.
- Tax-free growth and compounding.
- Similar to RRSPs and TFSAs.
- Prohibited investment rules apply.
- Tax-free qualifying withdrawals for home purchase.
- Conditions for qualifying withdrawals.
- Unused funds can be transferred tax-free to other registered accounts.
- Withdrawals and transfers do not replenish contribution limits.
- Non-qualifying withdrawals subject to withholding tax.
- FHSA and HBP withdrawals for the same home purchase.
- FHSA withdrawals are tax-free and not repaid.
- FHSA funds can be transferred to RRSP without reducing contribution room.
- Closure by age 71 or 15th anniversary if unused for home purchase.
- Unused funds transfer to RRSP or RRIF tax-free.
- Taxable withdrawal if FHSA funds are withdrawn.
- Deduction for contributions to own FHSA.
- Spouse can contribute, but attribution rules do not apply to FHSA income.
- Transfer possible in case of marriage breakdown.
- Spouse as successor account holder.
- Transfer to RRSP or RRIF on a taxable basis for non-eligible surviving spouse.
- Immediate withdrawal and withholding tax for non-spouse beneficiaries.
- Contributions possible for existing FHSA.
- Qualifying withdrawals require residency in Canada.
- Non-qualifying withdrawals subject to withholding tax.