Source: Getty Images <\/p>\n
Written by Aditya Raghunath<\/a> at The Motley Fool Canada<\/p>\n Income earned inside a Tax-Free Savings Account<\/a> (TFSA) does not affect Old Age Security (OAS) eligibility or trigger clawbacks because TFSA income is tax-free and excluded from government benefits assessments.<\/p>\n OAS eligibility and clawbacks are calculated based on your net world income, as reported on your tax return. However, TFSA withdrawals, gains, interest, and dividends are not included in taxable income. The OAS clawback threshold for the 2024 income year begins at $90,997 and fully phases out at around $148,451 of net income; however, this calculation excludes all TFSA earnings.<\/p>\n Unlike Registered Retirement Savings Plan (RRSP) withdrawals, employment income, or investment dividends from non-registered accounts, TFSA funds don\u2019t count toward income testing for OAS or Guaranteed Income Supplement (GIS) benefits at any level.<\/p>\n This makes TFSAs an excellent retirement vehicle for preserving government benefits. You can generate unlimited income within your TFSA without risking OAS reductions.<\/p>\n Canadian residents should consider maximizing TFSA contributions, focusing on growth investments within the account, and using TFSA withdrawals strategically to avoid pushing other income sources over OAS clawback thresholds.<\/p>\n Your TFSA effectively provides a pathway to supplement retirement income while maintaining full OAS eligibility.<\/p>\n TFSA investors should consider holding quality TSX stocks<\/a> such as Brookfield Infrastructure (TSX:BIP.UN<\/a>) that have the ability to deliver outsized returns over time.<\/p>\n Brookfield Infrastructure Partners delivered solid first-quarter (Q1) results with funds from operations (FFO) of US$646 million, or US$0.82 per unit, representing 12% growth when normalized for foreign exchange impacts.<\/p>\n The performance was driven by strong inflation indexation, commissioning of over US$1 billion from the capital backlog, and robust contracting within data centre businesses.<\/p>\n The data segment stood out, achieving 50% year-over-year FFO growth, while midstream operations benefited from elevated utilization and higher pricing.<\/p>\n BEP made progress on its strategic initiatives, securing US$1.4 billion in asset sale proceeds year to date toward its US$5-6 billion recycling target.<\/p>\n The US$9 billion Colonial Pipeline acquisition represents a transformational investment, providing exposure to critical U.S. energy infrastructure at an attractive nine times EBITDA (earnings before interest, tax, depreciation, and amortization) valuation with mid-teen cash yields.<\/p>\n Story Continues <\/p>\n The Australian container terminal sale at 18 times EBITDA demonstrates BEP\u2019s ability to achieve premium valuations for high-quality assets, generating a 17% IRR over nine years.<\/p>\n BEP recently announced a joint venture with GATX, which allows it to access a 105,000-railcar operating lease portfolio while leveraging the latter\u2019s operational expertise. BEP\u2019s 70% initial stake, combined with GATX\u2019s call options, demonstrates disciplined capital allocation while maintaining exposure to North American rail assets.<\/p>\n BEP has performed well amid the tariff war and an uncertain macro environment. Its portfolio\u2019s focus on regional networks charging usage fees provides insulation from direct tariff impacts, while contractual frameworks enable cost pass-through during inflationary periods.<\/p>\n Transport assets, representing 40% of FFO, maintain strong contracted cash flows with minimal GDP correlation, including seven-year average contract terms at the global intermodal logistics operation.<\/p>\n The company\u2019s robust investment pipeline, strong balance sheet, and proven ability to capitalize on market dislocations position BEP well for value creation.<\/p>\n With inflation-indexed contracts and defensive business characteristics, BEP stock offers attractive risk-adjusted returns in an uncertain macroeconomic environment.<\/p>\n The post How Much TFSA Income Is Too Much for OAS Eligibility?<\/a> appeared first on The Motley Fool Canada<\/a>.<\/p>\n Before you buy stock in Brookfield Infrastructure Partners, consider this:<\/p>\n The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now\u2026 and Brookfield Infrastructure Partners wasn\u2019t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.<\/p>\n Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the \u201ceBay of Latin America\u201d at the time of our recommendation, you\u2019d have $24,927.94!*<\/p>\n Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month \u2013 one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P\/TSX Composite Index by 30 percentage points since 2013*.<\/p>\n See the Top Stocks<\/a> * Returns as of 6\/23\/25<\/p>\n More reading<\/p>\n Fool contributor Aditya Raghunath<\/a> has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy<\/a>.<\/p>\n 2025<\/p>\n","protected":false},"excerpt":{"rendered":"Source: Getty Images Written by Aditya Raghunath at The Motley Fool Canada Income earned inside a Tax-Free Savings…\n","protected":false},"author":2,"featured_media":23811,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[19418,19419,45,49,48,19421,133,7772,3714,19420,131,132,8496,19417,16985,19422],"class_list":["post-23810","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-brookfield-infrastructure","tag-brookfield-infrastructure-partners","tag-business","tag-ca","tag-canada","tag-employment-income","tag-finance","tag-income-sources","tag-oas","tag-old-age-security","tag-personal-finance","tag-personalfinance","tag-retirement-income","tag-tax-free-savings-account","tag-taxable-income","tag-world-income"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/23810","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=23810"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/23810\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/23811"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=23810"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=23810"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=23810"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}