A Tax-Free Savings Account (TFSA) is a registered savings account that allows taxpayers to earn investment income tax-free inside the account.

• Each year you can contribute an amount up to your contribution room for the year.
  
  

  Year	Contribution Amount
  2009 - 2012	$5,000
  2013 - 2014	$5,500
  2015	$10,000
  2016 - 2018	$5,500
  2019	$6,000
  Total Contribution Amount*	$63,500

• Any unused contribution room from previous years is carried forward.
• Any interest earned on the savings, even from investments, will not be taxed.
• You can withdraw your money at any time, tax-free, for any reason, and any money you withdraw can be recontributed the following year.^**

Important Information

Contributions

• Contributions to a TFSA will not be deductible for income tax purposes, but investment income, including capital gains, earned in a TFSA will not be taxed, even when withdrawn.
• Unused TFSA contribution room can be carried forward to future years. For example, if you contribute $4,500 to your TFSA in 2012, your 2013 contribution room will be $6,500: $1,000 of unused room for 2012 plus the full $5,500 contribution room for 2013.
• Over-contributions - above your annual contribution limit - are charged a penalty by the Canada Revenue Agency (CRA).

Withdrawals

• You can withdraw funds from the TFSA at any time for any purpose, but you cannot recontribute the withdrawn amount until the following year.
• The amount withdrawn can be put back in the TFSA the following year without reducing your contribution room.
• Neither income earned in a TFSA nor withdrawals will affect your eligibility for federal income-tested benefits and credits.

Spousal contributions

• Contributions to a spouse's TFSA is allowed.
• TFSA assets can be transferred to a spouse upon death without affecting the survivor's existing contribution room.
• Interest paid on a loan used to make a TFSA contribution is not tax deductible.