Tax Free Savings Accounts (TFSAs) let you earn interest on which you do not have to pay tax.TFSAs are available to residents of Canada who are 18 or older with a valid social insurance number.  PCU offers different types of TFSAs with no restrictions on how the funds may be used. Buy a car, renovate your home or just save for a rainy day - the choice is yours.  

Talk to PCU about putting a TFSA to work for you.

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Types of Tax Free Savings Accounts

There are three basic types of TFSAs: deposit-type P plans, mutual funds, and self-directed plans. 

Tax Free Savings Account Eligibility

The individual owning the TFSA is the 'Holder'. Any individual person (not trusts or corporations) who meets all of the following three:

• Resident in Canada, and

• 18 years of age or older, and

• Holds a valid Social Insurance Number (SIN)

There is no maximum age limit to open or hold a TFSA and a person may hold more than one TFSA.

TFSA Contribution Limit

Contributions to a TFSA may only be made by the Holder and the amount is not tied to the income of the Holder.

• $6,500 is the maximum TFSA contribution limit for 2023.

• Contributions are not tax deductible.

NOTE: The Holder is responsible for ensuring the maximum contribution limit is not exceeded. An excess contribution will result in a penalty tax of 1 % per month for each month that the access contribution remains in the TFSA.

Non-resident Holder

When a Holder is no longer a resident of Canada, the following rules apply:

• The TFSA may remain open.

• No contributions may be made.

• Non-resident Holder will not accumulate a contribution room.

• Withdrawals will not increase the contribution room.

• If a non-resident Holder makes a contribution, the Holder is subject to a 1% per month penalty tax for each month that the contribution remains in the TFSA.

If the Holder becomes a resident of Canada, contribution room will commence accruing and the Holder may make future contributions.