To encourage saving, the federal government introduced the TFSA Tax-Free Savings Account in 2009. In some ways, the TFSA mirrors the RRSP and RESP in that there is an annual contribution limit but contributions are not tax-deductible. A TFSA therefore lets you grow tax-free investment income such as interest, dividends and capital gains and is a great way to set aside money throughout your lifetime.
Individuals 18 years of age and older may contribute a specified maximum amount each year to a TFSA. Your TFSA contribution room is the maximum amount that you can contribute to your TFSA. Unused contribution room […]