Introduced in January of 2009, TFSA's offer a unique way of savings with a competitive interest rate. These accounts are registered with the Government of Canada and Tax sheltered.
Features of a TFSA include:
- contributions with after-tax dollars
- contributions not tax deductable
- earnings tax sheltered
- withdrawal of contribution/income not taxable
- withdrawal of contribution/income increases contribution room for future years
Contribution Limits
- 2009 -$5000.00
- 2010 -Indexed*
*Indexed to inflation to the nearest $500.00. Your Notice of Assessment will include TFSA contribution room for the current year
Eligible Contributors
- Must be a resident of Canada
- Must be 18 years of age or older
- Must have a valid SIN number (cannot start with "9")