A Tax-Free Savings Account (TFSA) is a registered investment or savings account that allows for tax-free gains.
Before you begin
- You can open both managed and self-directed TFSAs with Wealthsimple.
- You can open as many managed TFSAs as you like. However, you can only have one self-directed TFSA.
- When you open a managed TFSA, you can choose a risk level. You can update your risk level at any time.
Open a TFSA
- Sign into the Wealthsimple app on your mobile device
- Scroll down to My accounts and tap Add an account
- Follow the prompts to open the TFSA
Open a managed TFSA
- Log into my.wealthsimple.com and sign in to your Invest & Save profile
- Select Add or transfer an account
- Choose No, I’ll start with a new Wealthsimple account
- Select TFSA from the account menu
- Follow the prompts to finish setting up your TFSA
Open a self-directed TFSA
- Log into my.wealthsimple.com and sign in to your Stocks, ETFs & Crypto profile
- Select Add an account in the center of the main account page
- Select a TFSA
- Follow the prompts to open the account
Frequently asked questions
Why is my SIN required to open an account with Wealthsimple?
All registered accounts (such as a TFSA or RRSP) must be registered with the CRA. In order to register these accounts with the CRA, we require your SIN. Additionally, all non-registered accounts require that we verify your identity with a third-party credit reporting agency to follow FINTRAC identity verification rules, which also requires your SIN.
Who can open a TFSA?
Anyone who is eligible to open a Wealthsimple account can open a TFSA.
Can I open a joint TFSA?
No. Since, the CRA calculates contribution room on a per-person basis, they do not allow joint TFSAs.
Can I convert another account into a TFSA?
No, converting accounts is not possible. If you wish to move funds from another account to a TFSA, you may be able to set up an internal transfer. If you are withdrawing funds from a registered account to transfer into your TFSA, there may be tax implications.
What are the fees in a managed TFSA with Wealthsimple?
Wealthsimple’s standard management fee is 0.5%. For accounts over $100,000, this fee drops down to 0.4%. To learn more about fees, click here.
How long before funds I deposit into a managed TFSA are invested?
Once you make a deposit to a managed TFSA, it takes up to three days to invest your funds.
Why am I being charged a withholding tax in my TFSA?
Although the tax-free status of the TFSA is recognized in Canada, the US Government doesn't officially recognize it, so US-company dividends received in your TFSA are subject to a 15% withholding tax. Don't worry, we take care of those for you so there's no effort needed on your end or any paperwork to file with the IRS.
Can I hold cash in a managed TFSA instead of investing my funds?
No, there is no option to hold cash in managed accounts. However, you can consider moving your portfolio to our high-interest savings ETF option for a no-risk investing alternative.
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