Tax Free Savings Account
Starting January 1, 2009, Canadians who are 18 years or older can start contributing to a Tax Free Savings Account (TFSA). It is tax free because the interest that you gain on your savings is not subject to tax. You can make withdrawals at anytime for any purpose. Also any unused contribution from the previous year can be carried forward to the current year. The maximum contribution limit for 2009 is $5,000. The TFSA will not have any impact on your RRSP limit.
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