Tax-Free Savings Account

Heralded as the single most important personal savings vehicle since the introduction of the registered retirement savings plan (RRSP). The tax-free savings account (TFSA) is a new type of savings account that allows you to earn tax-free investment income from eligible investment vehicles, starting from 2009. Maximum annual deposit amount is $5000.

The advantages are:

• Both Spouses will be entitled to make contributions regardless of employment status.
• Income earned in a TFSA is not taxable.
• Tax free withdrawal.
• Unused Contribution Amount can be accumulated.