Tax Free Savings Account (TFSA) for Individuals
Beginning January 2009, a Tax Free Savings Account is a new way for residents of Canada to set money aside, tax-free, throughout their lifetimes.
Contributions ($5000 maximum per person per year) to a TFSA and the interest on money borrowed to invest in a TFSA are not tax deductible. The income generated in the TFSA is tax-free when withdrawn.
Generally, the types of investments that will be permitted in a TFSA are the same as in a registered retirement savings plan (RRSP).
This would include mutual funds, securities listed on a designated stock exchange, Garanteed Investment Certificates (GICs), bonds, and certain shares of small business corporations.
Please call us or ask questions on blog and look for more information on
CRA website: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/tfsa-celi/menu-eng.html
I have ordered 100 of the TFSA brochures from CRA. That is the max amount. You may want to order 100 yourself as well.
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