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TFSA - Tax Free Savings Account
- One to five year GIC’s
- Variable Interest Savings Accounts
- Mutual Funds
The Federal Government has introduced a new registered savings account that allows you to earn tax – free income on your investments. There are no restrictions on the way TFSA contributions and earnings may be used. You can access your TFSA funds at any time, dependent on investment terms.
You are eligible for a Tax-Free Savings account if you are;
- A Canadian Resident, and
- 18 years of age or older; and
- Hold a valid Social Insurance Number.
Each year, beginning in 2009 you will have a maximum contribution limit of $5000. This contribution limit will be adjusted depending on the rate of inflation each year. If in any given year you contribute less than the maximum contribution limit it will be added to your next year’s contribution. Also, if you withdraw a certain amount from your Tax – Free Savings account that will be added to your next year’s contribution room. The Canada Revenue Agency will confirm the contribution room on the annual Notice of Assessment.
Tax- Free Savings Account holders can withdraw funds at any time, unless they are restricted to investment terms. Withdrawals are not reported as taxable income and are not subject to income tax and withdrawals will not impact eligibility for federal income tested benefits and credits.
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