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RSP and TFSA Information

TFSA Account Details

TFSA (Tax Free Saving Account) is offered by IB Canada for Canadian residents only.

A Tax-Free Savings Account (TFSA) allows customers to set money aside tax-free throughout their lifetime. Each calendar year, customers can contribute up to the TFSA dollar limit for the year, plus any unused TFSA contribution room from the previous year, and the amount withdrawn the year before.

  • Investments made inside a TFSA are not taxed.
  • Withdrawal from TFSA is not a taxable event.
  • Contributions into TFSA are not tax deductible.
  • There's no upper age limit to maintain a TFSA account.
  • Only individual account in the name of the plan holder can be opened
  • IBC does not support RSP/TFSA outbound or inbound transfers (to or from another financial institution) via Free of Payment (FOP) or Direct Registration Statement (DRS).
  • IBC does not facilitate RSP/TFSA outbound transfers (to another financial institution) except via the fully-electronic/ATON™ (Account Transfer Online Notification) transfer system.
  • IBC does facilitate manual or "non-ATON" RSP/TFSA inbound transfers (from another financial institution).

TFSA Fees/Maintenance Fee

No account maintenance fee.

Withdrawals out of TFSA are not subject to additional account specific charges and are only available in CAD.

Opening your TFSA Account

Existing eligible IB customers may open the TFSA as a linked account from Account Management. Under the heading of Manage Account, Add or Link Accounts, Create Linked Accounts, and TFSA as account type.

A customer must be a Canadian resident in order to open a TFSA

TFSA Account Contribution Limit

Year Annual Contribution Limit
2009 CAD 5000
2010 CAD 5000
2011 CAD 5000
2012 CAD 5000
2013 CAD 5500
2014 CAD 5500
2015 CAD 10000
2016 CAD 5500
2017 CAD 5500
2018 CAD 5500
2019 CAD 6000

Penalty of 1% per month would be assessed by CRA on excess contribution

TFSA Trading Permission

No trading on margin - all purchases must be paid in full in respective currencies; No account debit allowed. If needed, currency trade could be executed between USD & CAD.

Accounts are restricted to cash balances in CAD and USD.

TFSA is allowed to trade the following qualified investments:

  • Stocks listed on designated US and Canadian exchanges (excluding Venture-NEX segment and CSE single listed stocks)
  • Long equity call options
  • Long equity put options
  • Short equity call options with a fully covered position (covered call)
  • Long equity put options with a fully covered position (protective put).
  • Long put/call options on indices.
  • Warrants/Rights if the underlying asset acquired under the right to purchase is a qualified investment.
  • U.S. Bonds.
  • FX conversions limited to USD/CAD

Account Insurance

A TFSA account is considered part of a customer’s general account for purposes of CIPF coverage. Therefore, a TFSA will be combined with other (Non-RSP) IB accounts eligible for $1 million coverage.

Successor Holder

A TFSA account holder can designate the spouse or common law partner as the successor holder of the account. This means that up the death of the original holder, the spouse/common law partner becomes the new account holder.

If the account holder chooses not to designate his or her spouse or common law partner as successor holder, then a beneficiary could be named.

Successor holder nomination is not available for QC based TFSA accounts.

Interactive Brokers Canada Inc. is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and Member - Canadian Investor Protection Fund. Know Your Advisor: View the IIROC AdvisorReport. Trading of securities and derivatives may involve a high degree of risk and investors should be prepared for the risk of losing their entire investment and losing further amounts. Using borrowed money to finance the purchase of securities involves greater risk than using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of the securities purchased declines. Interactive Brokers Canada Inc. is an order execution-only dealer and does not provide investment advice or recommendations regarding the purchase or sale of any securities or derivatives. Our registered office is located at 1800 McGill College Avenue, Suite 2106, Montreal, Quebec, H3A 3J6, Canada.

Know Your Advisor: View the IIROC AdvisorReport