Tax-Free Savings Account (TFSA)

Starting January 2009, any Canadian resident 18 years or older with a valid SIN will have a great new way of sheltering their investments with the Tax-Free Savings Account (TFSA). The TFSA is the most powerful personal savings incentive since the RRSP and could revolutionize the way you that invest, grow and access your money.

Whether you need more room to shelter your savings, or a tax-free income to elevate your lifestyle, now you have an added advantage.

Power, Freedom and Security: TFSA Advantage

Power to save without paying taxes on the growth of your investments or affecting your eligibility for federal income-tested benefits (Old Age Security (OAS), Guaranteed Income Supplement (GIS), Canada Child Tax Credit (CCTC), GST Credit, etc.)

Freedom of flexible features and tax-free withdrawals to customize your TFSA for both short and long-term investment goals.

Security of certain benefit guarantees that may be reset to lock-in the growth when your TFSA is invested in Empire Life Segregated Funds.

With the right advice, a TFSA can help you meet your goals faster and more efficiently.

Key Features of a TFSA

	Contribute up to $5,000 per year with unused contribution room carried over
	Maximum age for opening or contributing to a TFSA is December 31st of the year the Annuitant turns 80 years old
	No tax deduction, but any growth of your savings is tax-free…for life
	Tax-free withdrawals at any time
	TFSA deposits do not affect your RRSP contribution limits or other federal income-tested benefits or credits
	Spousal income splitting allows married or common law partners to double their combined annual limits to $10,000
	Deposits, growth and income from a TFSA will not affect your eligibility for federal income-tested benefits (OAS, GIS, CTTB and GST credits)
	Eligible investments include; Empire Life Segregated Funds, Guaranteed Interest Options, Treasury Interest Option

So Why is a TFSA Important for You?

• In 2004, Canadians took $7 billion in early RRSP withdrawals (taxed at 10-30%)¹ for uses other than the first time Home Buyer and Lifelong Learning Plans
• 25% of RRSP holders either maximize their limits or face pension adjustments²
• Canadians earning $150,000 a year paid 67% of the capital gains tax collected in 2005³
• Based on current patterns, seniors may receive 50% of the key TFSA benefits⁴

Click on the link below to see how your tax savings in a TFSA can grow!
http://www.budget.gc.ca/2008/mm/calc_e.html

Visit the Canada Agency Revenue TFSA FAQ website.

Want more information? Talk to an independent advisor.