Elevate Your Savings with Sandhills TFSA
Revitalize your savings strategy with a Tax-Free Savings Account (TFSA) at Sandhills Credit Union.
Key Features:
Flexible Contribution Limits: Take control of your financial journey with a TFSA that allows contributions by the Holder without being tied to their income. Annual contribution amounts are determined by the federal government, offering you flexibility in shaping your savings plan.
Non-Tax Deductible Contributions: While contributions are not tax-deductible, the TFSA provides a unique advantage by allowing tax-free growth within the account.
Responsibility for Contribution Limits: Holders are accountable for ensuring they stay within the maximum contribution limit. Exceeding this limit results in a penalty tax of 1% per month for each month the excess contribution remains in the TFSA.
Accumulation of Unused Contribution Room: When contributing less than the maximum limit, the difference is termed ‘unused contribution room.’ This room accumulates annually and can be carried forward indefinitely. This flexibility allows Holders to catch up by contributing more than the maximum limit in future years.
Contribution Room Adjustment upon Withdrawal: TFSA withdrawals enhance contribution room for the following year. This unique feature allows for re-contributions in the future when funds become available.
Tax-Free Withdrawals: TFSA Holders can withdraw funds at any time, with potential restrictions based on investment terms. Withdrawals are not reported as taxable income and are exempt from income tax.
Annual Confirmation by Canada Revenue Agency: The Canada Revenue Agency provides annual confirmation of contribution room on the Notice of Assessment.
Whether you’re starting your TFSA journey or looking to optimize your existing plan, Sandhills Credit Union is here to assist you. Elevate your savings experience with the unique benefits of a Tax-Free Savings Account. Connect with us today to explore how a TFSA can enhance your financial strategy at Sandhills Credit Union.
