Tax Free Savings Account (TFSA)
Starting January 1, 2009, Canadians who are 18 years or older can start contributing to a Tax Free Savings Account (TFSA). A TFSA allows Canadians to earn investment income tax-free inside the account. The maximum yearly contribution is $5,000. This limit, however, will be adjusted annually to reflect inflation. The benefits of having a TFSA is that you can make withdrawals at anytime for any purpose and it will have no impact on your RRSP limit, and any unused contributions from the previous year can be carried forward to the current year.
The preceding information is for informational purposes only. As it is impossible to include all situations and circumstances, contact Dustin for a further review. Every effort has been made to ensure the accuracy of the information contained in this commentary. However, because of the nature of the subject, no person or firm involved in the distribution or preparation of this commentary accepts any liability for its contents or use.