What Is a TFSA?

Understand the Canadian Tax-Free Savings Account in simple language.

How it works

A TFSA is a registered account in which eligible investment income and withdrawals are generally tax-free under Canadian rules.

Contribution room

Room depends on eligibility, residency, past contributions and withdrawals. Withdrawals normally create new contribution room in the following calendar year, not immediately.

Important cautions

Overcontributions may result in penalties. Investments inside a TFSA can lose value. Confirm your available room with your own records and CRA information.

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