Group Tax-Free Savings Account (TFSA)

A Group TFSA is a savings plan under which contributions aren’t tax deductible, but whose income, including capital gains, is tax-free, even when withdrawn. This means that the TFSA’s ability to shelter investment income from taxes is comparable to an RRSP or Registered Pension Plan (RPP).

Advantages for your company

• Available as a stand-alone plan or as an add-on to an existing plan.
• Flexible and competitive administration and management fees.
• Simple to manage with fewer administrative tasks.
• Choice of options for submitting contributions.

Advantages for your employees

• Annual contribution limit is $5,000 no matter how much is contributed to an RRSP or RPP.
• Contribution limit is indexed to inflation, in increments of $500.
• Unused contribution room can be carried forward indefinitely for greater growth potential.
• Does not affect eligibility for federal plans (Old Age Security and Guaranteed Income Supplement).
• Withdrawals can be made at any time, tax-free. Amounts withdrawn generate new contribution room for the following year.
• Contributions aren’t tax deductible but investment income and amounts withdrawn are not taxable.