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Tax-Free Savings Account (TFSA)
What is a TFSA? A Tax-Free Savings Account (TFSA) is a flexible, tax-advantaged savings vehicle that helps you grow money for short-, medium- and long-term goals. Investment income and capital gains earned inside a TFSA are not taxable, and withdrawals are made tax-free. Because withdrawals are tax-free, a TFSA can also serve as an effective emergency fund.
Contribution rules
Annual limit for 2025: $7,000.
Contribution room is available regardless of income.
Unused contribution room carries forward indefinitely.
Key advantages
Tax-free growth: Interest, dividends and capital gains earned in the account are not taxed.
Tax-free withdrawals: Money taken out is not subject to tax and can be used for any purpose.
Flexibility: Withdraw funds at any time; re-contributions are possible using carried-forward room.
Flexible use: Suitable for short-, medium-, or long-term goals.
Contribution flexibility: Unused room carries forward to future years..
Considerations
Track your contribution room to avoid over-contributing, which can result in penalties.
Withdrawals create new contribution room for the following calendar year, not immediately in the same year unless you have unused room carried forward.
A TFSA complements other registered plans (like RRSPs); choose based on your tax situation and savings horizon.
Smart Ways to use TFSA
Start with your purpose
Whether it’s an emergency fund, a future purchase, or long-term growth, your TFSA can flex with your life.Match your investments to your comfort level
You don’t need to be aggressive to be smart — the right mix depends on time and peace of mind.Keep an eye on your contribution room
Especially if you’ve made withdrawals — planning ahead helps you avoid penalties and stay on track.Use your TFSA alongside other plans
When combined properly with RRSPs or other savings options, it becomes a powerful part of your overall strategy.
Not sure where to start?
That’s normal. We help clients review their goals and build a TFSA strategy that fits their timeline — without overwhelm.
TFSA Investment Options at a Glance
Your money is managed by experienced professional portfolio managers who actively monitor the markets and adjust investments as conditions change. Most importantly, iA offers TFSA options that align with your goals, timeline, and risk comfort.
In short:
You don’t get a one-size-fits-all solution — you get a strategy built for you.
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Think of these like mutual funds — with extra protection.
Invest in the market while benefiting from guarantees
Helps protect your investment if markets go down
Ideal for investors who want growth with built-in safety nets
Best for: Long-term growth with added peace of mind
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This is the steady and predictable option.
Fixed interest rate for the full term
100% of your original capital guaranteed at maturity
No market ups and downs
Best for: Conservative investors who value certainty
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Simple. Liquid. Stress-free.
Earn interest without market risk
Easy access to your money
Interest rate adjusts with the market
Best for: Short-term savings or emergency funds inside a TFSA
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A smart step up from regular savings.
Interest is earned daily
Paid monthly
More flexible than fixed-term options
Best for: Investors who want stability with better returns than basic savings
Why choose iA: Active management by experienced teams that identify growth opportunities and manage sector and country allocation to capture market trends.
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These funds invest in Canadian, U.S., or global stocks.
Higher growth potential over time
Market values can go up and down
Actively managed to capture opportunities
Best for: Long-term investors comfortable with short-term fluctuations
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Focused on bonds and income-producing investments.
More stable than stock funds
Designed to generate regular income
Less market volatility
Best for: Investors nearing retirement or prioritizing capital preservation
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A mix of stocks and bonds in one fund.
Growth + stability in one portfolio
Automatically rebalanced over time
Smoother ride through market cycles
Best for: Investors who want balance without constant monitoring
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Target specific trends and sectors.
Examples: technology, healthcare, ESG, real estate
Designed to capture long-term global trends
Risk and returns vary by theme
Best for: Investors looking to diversify or focus on future-driven opportunities
The right TFSA strategy depends on:
Your time horizon
Your financial goals
Your risk comfort level
iA offers flexible TFSA solutions across all risk profiles, backed by a proven track record and professional management. With the right mix, your TFSA can do more than just save — it can grow tax-free with confidence.
👉 Next step: Speak with a licensed financial advisor to design a TFSA strategy that fits your life today—and where you’re headed next.
Protect. Grow. Prosper.
TFSA vs RRSP: Which One Is Right for You?
Both are powerful. The right choice depends on how and when you need your money.
Not sure which one fits your situation?
Speak with a licensed financial advisor to design a TFSA–RRSP strategy that works for your income today and your goals tomorrow.
