A tax-free savings account (TFSA) is a great tool for hitting your savings goals. Make the most of yours by sidestepping these easy-to-make errors.
It’s been 10 years since the federal government introduced it, and the tax-free savings account (TFSA) is as popular as ever. According to Statistics Canada, 13.5 million Canadians had opened one of these flexible investment tools by the end of 2016.
It’s easy to see why. As the name says, any investment you hold inside your TFSA grows tax-free. Plus, you can withdraw from these accounts whenever you want. You can use your TFSA to help pay for a new home, your children’s education or even retirement. And you’re not taxed when you take the money out, either.
How much can you contribute to your TFSA?
For 2019, you can contribute up to $6,000 to your TFSA, and you can carry forward unused contribution room from previous years.