A Good Video to Explain a TFSA
What About a TFSA?
Tax Free Savings Accounts
Tax-Free Savings Accounts (TFSAs) are pretty much perfect. As the name says, any growth, whether interest or capital gains, is tax-free when you make a withdrawal from your TFSA. Whether you need emergency funds, or a tax strategy to avoid being over-taxed on gratuities, TFSAs allow you that flexibility.
- Annual contribution limit is $5,500.
- No minimum contribution.
- Unlike a RRSP, you can make contributions throughout your life.
- No income tax deduction for TFSA contributions.
- Unlike a RRSP, your TFSA contributions can be from any source of funds, not only employment income.