Group Tax-Free Savings Accounts
Help plan members grow their savings through a tax-sheltered investment option.
A Group Tax-Free Savings Account (TFSA) has no legislative requirement for employers to contribute. A TFSA complements your Registered Pension Plan or group Registered Retirement Savings Plan. It provides plan members with an option to consolidate their savings, subject to contribution limits.
A TFSA offers your plan members a tax-free investment option to help grow their savings, with no tax on withdrawals. Plan members can use it to save for big expenses like a new vehicle, vacations and home improvements, as well as supplementing retirement savings or whatever else they may be planning.
Advantages for Employers
A TFSA is simple to manage and there is no requirement for employers to contribute. Also, a TFSA is a great supplement to an employer’s current retirement savings, as well as a strategic tool that demonstrates their involvement in the financial security of their employees and can increase employee loyalty and engagement.
Advantages for Employees
In a TFSA, contributions are not locked in for retirement and investment income is tax-sheltered. This plan offers great flexibility as plan members can save not only for retirement but also for other savings goals. They can access their savings tax-free at any time and easily contribute through payroll deductions.
To learn more about Group Tax-Free Savings Accounts, we invite you to reach out to us.