How does a TFSA work?
A Tax-Free Savings Account (TFSA) lets you save tax-free for any goal and withdraw the money at any time, tax-free. There are contribution limits and over contribution penalties to be aware of.
These previous questions may help to provide insight as you move forward.
- “Do I have to pay tax when I withdraw money from a TFSA?”
- “Am I able to transfer from one TFSA account to another TFSA account without it counting as a contribution?”
- “If I withdraw $10,000 from my TFSA this year, can I put it back into my TFSA next year?”
- “How do I determine my RRSP and TFSA available contribution room?
Visit GetSmarterAboutMoney.ca to learn more about TFSAs and other investing and financial topics. Speak with a registered financial representative or tax professional for advice to fit your personal situation.