- You can put as little as you like into a TFSA – or as much as $5,500 a year.
- You can start saving without putting your money out of reach.
- You watch your savings grow as earnings compound year after year.
- Interest, dividend and capital gains earnings are tax-free.
- withdraw money any time with no penalty and put it back the next year if you like.
- Withdrawals aren’t part of your income so it won’t add to your income tax bill or take away from your government – sponsored benefits.
- It’s a great place to park money for something big further down the road, like a home or car.
- Contribution room can be carried forward year to year. Anyone who was 18 or older in 2009 can contribute up to $25,500.
- Unlike RRSPs, there is no upper age limit for contributions.
- You can invest in what you like in your TFSA: Cash, Bonds, GICs, Mutual Funds, Stocks, Options and more!
A few reasons why investing in a tax-free savings account makes total financial sense.
– Posted by Amanda Brash