Link’s group TFSA plan can create a motivated workforce—and a more comfortable retirement
It’s an incremental financial windfall. Play it right, and you might be feeling those trade winds on your face even sooner. In recent weeks, the Canada Revenue Agency announced that the Tax-Free Savings Account (TFSA) contribution in 2019 will be $6,000.
That’s up from $5,500 in 2018 . . . and for those eligible Canadians who’ve never contributed to their TFSAs since its introduction, the total room available as of 2019 will be $63,500.
Another arrow in the quiver
Since the Harper federal government introduced the TFSA in 2009, there’s been plenty of debate over which is more advantageous, the TFSA or the RRSP.
But there’s no argument about this point—the TFSA is a great arrow in your financial quiver:
- The TFSA is an excellent savings vehicle, in both the short and long term;
- You pay no tax on your earnings;
- You can carry forward any unused contribution room to future years;
- Any withdrawals from the current year can be added to your contribution limit the following year (be careful about paying back money you withdrew too soon);
- You can use the TFSA to shelter investments that would otherwise be taxed at premium rates;
- Once you retire, any withdrawals from your TFSA are tax exempt, and do not count as income.
Group TFSAs create a motivated workforce
Link Investment Management is a burgeoning innovator in the workplace financial wellness space. Our innovative, cloud-based benefit plans—whether they’re group TFSAs, group RRSPs, or our defined contribution LINK Multi Employer Pension Plan—are an excellent fit for small and midsized businesses.
If you’re an employee, you’re thinking about life after work. If you’re an employer, you may now be even more convinced that a group TFSA is a fantastic avenue for creating a motivated workforce.
Link’s innovative solutions offer distinct advantages to both groups:
- Individualized, prescribed portfolios, matched to personal risk profiles and investment objectives;
- Very low fees, along with fee transparency;
- Considerable tax benefits for employers, particularly through the ALPP option;
- A fully digital platform, with simple, straightforward and rapid online enrolment;
- Non-branded Exchange Traded Funds (ETFs) with more flexibility and lower fees and expenses;
- Plan monitoring and rebalancing by Link’s team of experienced portfolio managers; and
- Link’s assumption of the administrative, compliance and recordkeeping burden for wellness plans.
A ‘life after work’ solution
So . . . as the experts are telling us: TFSA. ASAP. Right?
Whether your company looks at the group TFSA as a secondary, short-term savings vehicle or a long-term wealth builder, you’re setting your workforce up for a more comfortable retirement.
And who wouldn’t want that?