And you, how much do you have in your TFSA?

A tax haven within everyone’s reach for some, an aggravating factor for inequalities for others; the tax-free savings account (TFSA) remains the friend of investors looking to minimize their tax bill. How popular is it with Canadians? How much is in the best-funded TFSAs of Quebecers?

Andre Dubuc
The Press

The holder of a TFSA in Quebec has accumulated an average of $28,940 there as of December 31, 2019. These are the most recent figures processed by Statistics Canada using data from the Agence du Revenu du Québec. Canada. 2020 figures are expected to be released shortly.

Implemented in 2009, the TFSA is a tax-sheltered savings tool. Contributions are non-tax deductible, but withdrawals are non-taxable, unlike the Registered Retirement Savings Plan (RRSP). Contribution room is cumulative and funds withdrawn in the current year increase the contribution room for a subsequent year.

Surprisingly, according to a financial advisor to whom we submitted the data, Quebecers have more money in the TFSA than Canadians on average.

“It surprises me, because we often hear that Quebeckers are poorer than Ontarians or Western Canadians,” says Sylvain Lapointe, stockbroker attached to Peak Securities. Its main office is located in the borough of Saint-Hubert, in Longueuil.

However, the gap between the Quebec and Canadian averages is disappearing. Since 2016, the average TFSA balance in Canada has been growing faster than in Quebec, observes Mr. Lapointe, without being able to offer an explanation.

At the end of 2015, the Quebecer had an average of $19,040, compared to $18,070 for the Canadian, a difference of $870. Five years later, at the end of 2019, the spread fell to $210. The participant from Quebec has $28,940 in his TFSA and the participant from Canada has $28,730.

two extremes

That said, the Quebec average of $28,940 hides large differences between account balances.

Thus, 30% of TFSA holders, or 825,000 taxpayers, have accumulated less than $4,340. At the other end of the spectrum, 275,000 Quebecers have a balance above $71,000.

Ten years after the creation of the TFSA, 4 out of 10 Quebecers aged 18 and over have opened this type of account, an identical proportion to Canadians.

The product is gaining popularity. In 2015, the year of his 5^and anniversary, only one-third of adults in Quebec had opened a TFSA.

Collectively, Quebecers have set aside $80 billion in their TFSA, or 23.3% of the Canadian total of $343 billion.