The Tax-Free Savings Account
Graph showing the increase of the annual TFSA dollar limit from $5,500 to $10,000 in 2015.
Under proposed legislation, the annual TFSA dollar limit for 2015 is increasing from $5,500 to $10,000.
The proposed measure increasing this limit is subject to parliamentary approval. Consistent with its standard practice, the CRA is administering this measure on the basis of the Budget announcement. Financial institutions may immediately allow existing and new account holders to contribute up to the proposed maximum.
Saving just got a whole lot easier!
The Tax-Free Savings Account (TFSA) program began in 2009. It is a way for individuals who are 18 and older and who have a valid social insurance number to set money aside tax-free throughout their lifetime. Contributions to a TFSA are not deductible for income tax purposes. Any amount contributed as well as any income earned in the account (for example, investment income and capital gains) is generally tax-free, even when it is withdrawn. Administrative or other fees in relation to TFSA and any interest or money borrowed to contribute to a TFSA are not deductible.
Forms and publications
- Guide RC4466, Tax-Free Savings Account (TFSA), Guide for Individuals
- Form RC240, Designation of an Exempt Contribution Tax-Free Savings Account (TFSA)
- Form RC243, Tax-Free Savings Account (TFSA) Return
- Form RC243-SCH-A, Schedule A - Excess TFSA Amounts
- Form RC243-SCH-B, Schedule B - Non-Resident Contributions to a Tax-Free Savings Account (TFSA)
- Form RC343, Worksheet - TFSA contribution room
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