Introduction to the TFSA

Tax-free Savings Account (TFSA) – The Basics

• Starting January 1, 2009 Canadian investors, age 18 and over, can contribute $5000 annually to a TFSA
• Eligible investments – cash instruments, mutual funds, segregated funds, equity and fixed income
• Contributions are not tax deductible
• Income earned and capital gains achieved will not be taxed
• Withdrawals can be done at any time, for any purpose and are tax free
• Amounts withdrawn from the TFSA, are added back into the contribution room the following year