The Tax-Free Savings Account
Saving just got a whole lot easier!
The Tax-Free Savings Account (TFSA) allows Canadians, age 18 and over, to set money aside tax-free throughout their lifetime. Each calendar year, you can contribute up to the TFSA dollar limit for the year, plus any unused TFSA contribution room from the previous year, and the amount you withdrew the year before.
Qualifying transfers, exempt contributions and specified distributions are not considered in the calculation of contribution room.
The annual TFSA dollar limit for 2014 is $5,500.
All income earned and withdrawals from a TFSA are generally tax-free. Plus, having a TFSA does not impact federal benefits and credits. It's a great way to save for short and long-term goals.
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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