Your TFSA (Tax-Free Savings Account) is a flexible savings arrangement registered under the Income Tax Act (Canada) that allows Canadians to contribute up to a certain amount each year. Contributions are made with after-tax dollars and are not tax-deductible. Investment income is not taxed and withdrawals are tax-free.
If your TFSA is invested in:
- An accumulation annuity, it is protected separately from other accumulation annuities.
- A segregated fund policy, the promised guaranteed amount is added together with other amounts protected under Assuris’ Registered Cash Value protection.
Group Tax Free Savings Account
A Group TFSA is protected separately from an Individual TFSA.
Assuris protection is applied to the guarantee on a segregated fund. If your TFSA is invested in a group segregated fund policy it will generally not provide a guaranteed amount on death or maturity. Therefore, Assuris’ protection does not apply.