TFSA: Tax-free savings account

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 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income earned in the account (for example, investment income and capital gains) is generally tax-free, even when it is withdrawn.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 deductible.

Topics:

- Opening a TFSA Eligibility, non-resident rules, how to open a TFSA, impact on government benefits and credits

- Contributions, withdrawals and transfers Yearly contribution limit, withdrawals, transfers

- Types of investments Qualified investments, transfers from RRSPs, in-kind contributions

- Tax payable on TFSAs Proposed TFSA Return, tax payable situations

- Life events Death of a TFSA holder, marriage or common-law partnership breakdown, leaving Canada