Personal Tax: Tax Free Savings Accounts

Personal Tax
Tax Free Savings Accounts Effective for 2009 Contributions of $5000 annually (indexed to inflation) can be made to a tax free savings account. Contributions will not be deductible. Withdrawals will not be taxable. Income earned (interest, dividend or capital gain) will not be taxable. Unused contribution room carries forward. Withdrawals free up more room but excess contributions will be subject to a 1% tax per month. Be sure to specify a successor to ensure Tax Free status continues after death. See your financial institution to specify your successor. There are very stiff penalties for over-contributing to TFSA

Personal Tax

Tax Free Savings Accounts

Effective for 2009 Contributions of $5000 annually (indexed to inflation) can be made to a tax free savings account. Contributions will not be deductible. Withdrawals will not be taxable. Income earned (interest, dividend or capital gain) will not be taxable. Unused contribution room carries forward. Withdrawals free up more room but excess contributions will be subject to a 1% tax per month.

Be sure to specify a successor to ensure Tax Free status continues after death. See your financial institution to specify your successor.

There are very stiff penalties for over-contributing to TFSA

Personal Tax

Checklists and Forms

General Personal Tax Information

Deadlines, Dates, and Addresses

Tax Free Savings Accounts