What is TAX FREE SAVING ACCOUNT (TFSA)?
Get ready for a new way to grow your savings Starting January 2009, you will have another great way to grow your savings. With the introduction of the new Tax-Free Savings Account (TFSA) by the Federal Government, Canadian residents age 18* and older will be able to contribute up to $5,000 per year without being taxed on investment income or capital gains. And while there is no tax deduction for contributions, the Tax-Free Savings Account is extremely flexible and can be used to help meet both short- and long-term investment goals. Key Benefits of the Tax-Free Savings Account: Contribute up to $5,000 per year tax-free You are not required to have earned income to contribute Withdraw money for any reason – without being taxed Choose from a variety of investment options: RBC Funds, RBC GICs and RBC Savings Deposits You don’t lose the contribution room if you make a withdrawal, but you do need to wait until the next year to re-contribute the money You can provide funds to your spouse for
