A group TFSA is a type of savings plan. Contributions aren’t tax-deductible, but the income they generate (including capital gains) is tax-free, even when withdrawn.
Advantages
| For employers | For employees |
|---|
- Often offered in combination with a retirement savings plan
- Easy to manage
- Great addition to employee benefit package
| - Offers flexibility for short-and medium-term savings goals
- TFSA contributions don’t count toward RRSP contribution room
- Money can be withdrawn at any time for any reason, tax-free
|
Contributions
| Employer | Employee |
|---|
- No minimum contribution required
| - Can be made via regular payroll deductions or as lump-sum deposits
- There are annual contribution limits, but they’re cumulative:
- 2009 to 2012: $5,000
- 2013 and 2014: $5,500
- 2015: $10,000
- 2016, 2017 and 2018: $5,500
- 2019 to 2022: $6,000
- 2023: $6,500
- 2024: $7,000
|
Details
| Administration | Investments |
|---|
- Plan needs to be registered with Canada Revenue Agency
- No regulatory fees
- No annual meeting required
- Subject to payroll taxes, since contributions count as salary
| - Employees responsible for their investment choice
- Investment policy not required
|
Note
This text is for information purposes only. Refer to the policy for all conditions, exclusions and restrictions.