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TFSA Insurance

What is a TFSA? The Tax-Free Savings Account (TFSA) is a savings account available to all Canadian residents who are at least 18 years of age or older and you can save up to $5000 per year. . This account allows them to earn investment income tax-free throughout their lifetime.

TFSA contributions are capped with an annual limit and are not tax-deductible. Withdrawals made from a TFSA are not taxed, however, and contribution is not lost.

You can open a TFSA for as little as $50, and with this deposit you can in subsequent years carry forward $4950. Open a TFS Account today to take advantage of the 2009 start up year.

You can withdraw funds available to your TFSA at any time for any purpose and the full amount of withdrawals can be put back into your TFSA in future years.

Neither income earned in a TFSA nor withdrawals affect your eligibility for federal income-tested benefits and credits.

You can also provide funds to your spouse or common-law partner to invest in their TFSA.

TFSA funds can be invested many different options, but two examples are:
- GICs
-Segregated funds, guaranteed investment funds

No all companies offer the same type of investment, and some charge a fee for closing out your TFSA if you decide you want to move it elsewhere...ask this question when you set up your TFSA.

Set up of Tax Free Savings Accounts (TFSA)

The Canadian government introduced Tax Free Savings Accounts (TFSA) as a new way of saving money without paying tax on the interest earned on the savings. The concept is that you can contribute up to $5,000 each year and not pay tax on the interest earned.

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