The TFSA is a savings account where residents of Canada ages 18 and over can set money aside in eligible investment vehicles and watch those savings grow tax-free throughout their lifetimes. 

While Canadians from all income levels can benefit there is no income requirement to contribute to a TFSA.  For example, if you are a stay at home parent, your spouse or common-law partner can give you funds to contribute to your own TFSA with no tax consequences to either of you.  

Note: The age of majority is 19 for residents of Newfoundland and Labrador, New Brunswick, Nova Scotia, British Columbia, Northwest Territories, Yukon and Nunavut, which may delay the opening of a TFSA. However, the accumulation of contribution room will start at age 18.

• If you are at least 18 years old and a resident of Canada with a Social Insurance Number, you can open a Tax–Free Savings Account. (Note: TFSAs may not be opened as joint accounts or under a business name.)
  
• The 2009 contribution limit is $5,000.
  
•  Each year you could contribute an amount up to your contribution room for the year.  Your contribution room would be made up of three amounts:
  
  1. The current limit of $5,000, which will be adjusted by the Consumer Price Index (CPI) and rounded to the nearest $500 on a yearly basis;
  2. Any withdrawals made in the previous year would be added to the contribution room for the year;
  3. Any unused contribution room from the previous year would be added to the contribution room for the year.

• Your contributions to a TFSA are not deductible for income tax purposes.  However, the investment income, including capital gains, earned in your TFSA is tax-free.  Therefore, any capital losses generated in the account cannot be used to offset taxable capital gains outside the account.
  
• Withdrawals from a TFSA are tax-free.
  
• You can withdraw funds available in your TFSA at any time for any purpose (subject to a withdrawal fee).  Any amount withdrawn in a given year is added back to your unused contribution room the following year.  For example, Jane Smith contributes $5,000 and withdraws $2,000 in 2009.  In 2010, Jane can contribute $7,000 to her TFSA.
  
• Your unused TFSA contribution room is carried forward and accumulates into future years, which means there is no lifetime limit on the amount of your TFSA contributions.
  
• There is no requirement to collapse your TFSA at a set age.  You can maintain it as long as you live.
  
• Neither income earned within a TFSA nor withdrawals from it affect your eligibility for federal income-tested benefits such as Old Age Security (OAS), Guaranteed Income Supplement (GIS), Canada Child Tax Benefit and Goods and Services (GST) credits.
  
• The Group TFSA offered through Reuter Benefits requires no minimum amount of initial or ongoing plan member contributions.  You can enrol to have regular contributions deposited to your account, transfer funds or do a lump sum payment.

You can complete the TFSA enrolment form and Pre-Authorized Cheque Plan form.  Completed forms can be scanned and sent to retire@reuterbenefits.com or mail to:

Reuter Benefits
15 Sheldon Drive Unit 4
Cambridge ON  N1R 6R8

If you require any assistance, please call us at 1-800-666-0142

• There are no Front-end or Back-end fees.
• There is an Investment Management Fee (IMF) on each available fund.  **Add PDF file with listing.  Generally, the Investment Management Fees are lower on a Group Plan than on an individual basis.
• There is a $25.00 fee for any withdrawals from the Group TFSA.

• A complete listing of available funds is available in the Group Investment Report
• Complete the Investor Profile Questionnaire to determine what type of investor you are.

If you would like assistance in the selection of your funds, please call our office at 1-800-666-0142.

No, interest on money borrowed is not deductible for tax purposes

In the first year of contribution, members must monitor their own TFSA contribution room. Canada Revenue Agency will determine the contribution room for each eligible member who files a T1 individual income tax return. Your contribution room will be reported in a new section on your annual Notice of Assessment.

Yes, you can have more than one TFSA account (including both a group and an individual TFSA) but the maximum allowable contribution amount applies to the total of all TFSA accounts held.

If you make a TFSA contribution beyond the maximum allowable amount the Canada Revenue Agency (CRA) will assess a penalty. The excess contributions would be subject to tax of 1% per month for each month the excess amount remains in your account.

No, there is no TFSA Spousal Plan. However, individuals can provide funds to their spouse or common-law partner to invest in their own TFSA, up to the allowed TFSA contribution room. Money you give to your spouse or common-law partner will not be subject to CRA income attribution rules. The TFSA allows both you and your spouse or common-law partner to earn tax-free interest or investment earnings, regardless of which spouse or common law partner contributed to the fund.

Yes, you could use the TFSA assets as security for a loan.

If you become a non-resident of Canada, you would be allowed to maintain your TFSA, and you would not be taxed on any earnings in the account or on withdrawals. However, you would not be allowed to make any further contributions and no contribution room would accrue for any year throughout which you are a non-resident.

When there is a breakdown in marriage or common-law partnership, an amount can be transferred directly from one former spouse or common-law partner's TFSA to the other's TFSA in the following situation.

You and your current or former spouse or current or former common-law partner are living separate and apart at the time of the transfer and you are entitled to receive the amount:

• under a decree, order, or judgment of a court, or under a written separation agreement; and
• to settle rights arising out of your relationship on or after the breakdown of your relationship.

The amount of the transfer will not reduce the recipient's eligible contribution room; however, since this transfer is not considered a withdrawal, the transfered amount will not be added back to the transferor's contribution room at the beginning of the following year. The transfer will not eliminate any excess amount in the TFSA.

 It is recommended that you seek the advice of a legal professional regarding the implications to your TFSA savings and/or consult Revenue Canada Agency.

Earnings that are generated in the account after the account holder’s death will be taxable while those earned prior to death would remain tax-exempt. However, it would be possible to maintain the tax-free status of earnings if the account holder names his or her spouse or common-law partner as beneficiary or successor account holder. The assets of the deceased’s TFSA could be transferred to the TFSA of the surviving spouse or the common law partner without any impact on the survivor’s existing contribution room.

Information about the Tax-Free Savings Account is based on what is currently available from the Canadian government and can be subject to change.

Our rates are very competitive! View detailed information .(this report is updated monthly)

A complete Group Investment Report is available to provide detailed information about funds, rates of return, investment styles and anything else you need to know about the TFSA investment process.

• MLI Jarislowski Fraser Balanced Fund 5241,
• MLI Leith Wheeler Diversified Pooled Fund 5301, and
• MLI BGI US Equity Index Fund 8322.