TFSA accounts are a flexible registered savings account suitable for Canadians of all incomes. The account can hold any security that is RRSP-eligible. TFSAs can be used as collateral for a loan. Interest on money borrowed to invest in this account is not tax-deductible.
Who Might Benefit from a TFSA
- Investors new to the workforce
- People saving for retirement
- Future home-buyers
- Income splitters
- Investors already holding interest-bearing investments in a non-registered account
- Seniors and those concerned about clawbacks
- Investors who have maxed-out their RRSP contributions
- RRIF holders
|Year||TFSA Annual Limit||Cumulative Total|
|2009 – 2012||$5,000||$20,000|
|2013 – 2014||$5,500||$31,000|
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