Tuesday, January 27, 2009

Tax Free Savings Account

Here is a summary of the features of a tax free saving account:

Canadians 18 and older can put up to $5,000 per year into a tax free savings account.

Contributions to the TFSA will not be tax deductible but investment income, including capital gains, earned in a TFSA will not be taxed even when withdrawn.

Unused TFSA contribution room can be carried forward to the next year.

The amount withdrawn can be put back at a later date without affecting your contribution room.

Contributions to a spouse's TFSA is allowed and is transferable upon the death of the spouse.

For more info please click on the link to the top right of my blog entitled "Tax Free Savings Account".

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