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TFSAs in a Nutshell
- Launched in 2009, a TFSA lets you set aside up to $5,000 a year to grow completely tax-free. You’re not taxed on interest or gains in the Account, and you’re not taxed when you withdraw the money. No tax… not now, not later.
- You can carry forward unused contributions. So if you haven’t been putting money into a TFSA, no problem. People over the age of majority can catch up by adding up to $5,000 for every year since 2009.
- If you need the money, it’s available to you, anytime. Then, whatever you withdraw in any given year can be put back in your TFSA the following year.
- You can have more than one TFSA. Want a different TFSA for each of your savings goals? Great idea. Just remember, the maximum annual contribution is $5,000 for all of your TFSAs combined-even ones at other financial institutions.