TFSAs – Ottawa, Ontario
Tax Free Savings Accounts work together with other registered savings plans to help you meet your lifetime savings needs. Contributions are not tax-deductible, however, the growth is tax exempted and can be withdraw anytime tax free.
As of January 1, 2013, Canadian residents, age 18 and older, can contribute up to $5,500 annually to a TFSA. This is an increase from the annual contribution limit of $5,000 for 2009 through 2012 and reflects indexation to inflation. Unused TFSA contribution room can be carried forward and used in future years. Withdrawals from a TFSA may be put back into the TFSA in future years.
TFSAs may take the form of mutual funds or Guaranteed Investment Certificates (GICs), according to your needs and preferences.