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WHAT IS THE TAX-FREE SAVINGS ACCOUNT (TFSA)?
The TFSA is a registered account that gives investors the ability to earn investment income tax-free. This account is available since 2009.

WHO CAN INVEST IN A TFSA?
All Canadian residents aged 18 years and older can invest in a TFSA, regardless of their income.

WHAT AMOUNT CAN BE INVESTED IN A TFSA?
The 2015 contribution limit has been established at $10,000. The annual maximum will be indexed to the inflation rate and rounded yearly to the nearest $500.

WHAT HAPPENS IF I DON’T MAKE ANY CONTRIBUTIONS TO MY TFSA FOR SEVERAL YEARS OR IF I CONTRIBUTE LESS THAN THE ALLOWABLE LIMIT?
Your unused contributions will be carried forward to subsequent years. For example: if your contribution during 2009 only reached $3,000, you had the right to contribute up to $7,000 the following year. The unused portion of your allowable contribution for 2009 ($2,000) was added to your allowable contribution for 2010 ($5,000).

HOW WILL I KNOW HOW MUCH I’VE CONTRIBUTED TO THE ACCOUNT?
Every year, the government will establish the contribution limit for your TFSA. To find out the maximum amount you can invest in your TFSA, you can refer to the notice of assessment sent every year by the Canada Revenue Agency following the filing of your income tax return.

CAN I HOLD DIFFERENT TYPES OF INVESTMENTS IN MY TFSA?
The TFSA can contain investments similar to those in an RRSP, which include mutual funds and guaranteed investment certificates.

CAN I WITHDRAW FUNDS FROM MY TFSA?
Yes, you can withdraw any amount for any purpose. Furthermore, amounts withdrawn can be carried forward and added to your contribution limit for subsequent years.

WILL WITHDRAWALS AFFECT MY INCOME-TESTED BENEFITS?
No, withdrawals from a TFSA will not be taken into account for the eligibility of various benefits such as the Old Age Security Pension, Guaranteed Income Supplement, Employment Insurance benefits and the Canada Child Tax Benefit.

CAN I OPEN A TFSA FOR MY YOUNG CHILDREN?
No. Holders of a TFSA must be aged at least 18 years.