Tax-Free Savings Account (TFSA)
The Tax-Free Savings Account (TFSA) is an account in which residents of Canada can set money aside and watch the savings grow tax-free. Since 2009, eligible contributors can deposit to their TFSA every year. The annual TSFA dollar limit for 2013 is $5,500.
The TFSA complements existing registered savings plans like the Registered Retirement Savings Plans (RRSP) and the Registered Education Savings Plans (RESP).
Delivered by: Department of Finance Canada
To open a TFSA, individuals must meet the following requirements:
- be at least 18 years of age
- have a valid social insurance number
- reside in Canada
A TFSA is set up through a financial institution such as a bank, caisse populaire or a credit union or insurance company (issuer).
More information can be found on the Tax-Free Savings Account (TFSA) Web site.
For enquiries related to Tax-Free Savings Accounts, please contact the Canada Revenue Agency.
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