January 1st, 2014 brings more TFSA contribution room to every Canadian over 18 years old. In 2014, every person can contribute an additional $5,500 to their TFSA.
If someone has never contributed to a TFSA they can open an account and deposit up to a limit of $31,000. Otherwise, members should check their CRA - tax return remittance for allowable TFSA room.
A PARAMA TFSA is another great way for you to save
Like an RSP, any earnings within a TFSA account are sheltered from tax.
Unlike an RSP, withdrawals are not subject to income tax.
Open to all Canadian residents who are 18 years of age or older and
have a valid Social Insurance number. Further, a spouse can contribute to their spouse’s
TFSA account without income attribution rules applying.
The annual limit is $5,500. Any unused contribution room is carried over
to the following year. Withdrawals can be made at any time for any reason. In addition,
you can re-contribute any such withdrawals as the withdrawal amount is added to your
future contribution limit.
If you’re looking to save money and minimize taxes at the same time – and who isn’t? –
the new TFSA will be a valuable tool. We recommend that every eligible Member open up
an account at PARAMA as soon as possible. As always, PARAMA is committed to providing
our best possible rates for safe and guaranteed returns. For additional details, please pick up a detailed TFSA pamphlet available at both of our branches.
Don’t miss this opportunity! Begin a Happy and Prosperous New Year by opening up
your PARAMA Tax Free Savings Account as soon as possible!
YOUR PARAMA TEAM