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Tax Free Savings Account

What   Offers member a flexible registered savings option in which the incomed earned is completely tax-free
Who   Members over the age of 18 with a valid Social Insurance Number
Deposit Limit   Set annually. As of January 2017, you can contribute $5,500 annually in your TFSA, plus any unused contribution amount you may have accumulated. However it’s important not to over contribute.

The Tax-Free Savings Account (TFSA) is a registered government program that offers members over the age of 18 with a valid Social Insurance Number to grow their savings quickly and efficiently by sheltering their investment earnings and withdrawals from tax. This flexible savings account helps you meet both your short- and long-term goals quickly and efficiently.



  • Unlike other registered tax-deferred plans, interest earnings in your TFSA are never subject to Canadian tax, even when you withdraw the funds for any given purpose.
  • Although there are contribution limits, the contribution amounts are not reflective of your earned income, so any eligible member can participate.



  • There are set annual contribution limits (please see below for annual contribution limits).
  • Any unused contribution room can be carried forward indefinitely, and there is no limit on how much contribution room you can accumulate.
  • Similar to an RRSP, a penalty will be assessed by Canada Revenue Agency (CRA) of 1% per month on your excess contribution.
  • Canada Revenue Agency tracks your contribution room and you may confirm your contribution room with them.
  • Contributions made to an TFSA are not tax deductible.
Year Contribution Limit
2009 $5,000
2010 $5,000
2011 $5,000
2012 $5,000
2013 $5,500
2014 $5,500
2015 $10,000
2016 $5,500

*If you were 18 or older* in 2009, have been a tax resident of Canada and opened a TFSA in 2017, you could contribute up to $52,000.



  • You may withdraw funds for any given purpose. Please note frequency and penalty with Sharons Credit Union may depend on the investment account type (ie. Non-redeemable GIC)
  • Withdrawals can be made tax-free, and does not affect your income for the year
  • Withdrawals that are made in the current calendar year will be added to your unused contribution room, however amounts can’t be re-contribution until the following year or later.


Transferring TFSAs

It is possible to transfer any existing TFSAs with other financial institutions to Sharons Credit Union and vice versa. However, penalties are applicable for TFSAs transferred out of Sharons Credit Union.


Deposit Security

At Sharons Credit Union, depositors are 100% protected by the Credit Union Deposit Insurance Corporation of British Columbia.