Saving just got a whole lot easier!
The Tax-Free Savings Account (TFSA) program began in 2009. It is a way for individuals who are 18 and older and who have a valid social insurance number (SIN) to set money aside tax-free throughout their lifetime. Contributions to a TFSA are not deductible for income tax purposes. Any amount contributed as well as any income earned in the account (for example, investment income and capital gains) is generally tax-free, even when it is withdrawn. Administrative or other fees in relation to TFSA and any interest or money borrowed to contribute to a TFSA are not tax deductible.
Watch Your Limit When Contributing to a TFSA
The best way to get the most out of your Tax-Free Savings Account while staying within your limits is to:
- Remember that the annual TFSA dollar limit is for all your TFSAs
- Calculate your contribution room before you contribute (check My Account & your contributions through your financial institution)
- Keep in mind that withdrawals aren’t added back to your contribution room until the next year