What is a Tax-Free Savings Account (TFSA)?
The TFSA was established by the Canadian government in 2009 as a “flexible savings vehicle” for Canadians. When you add funds to a TFSA, you are making contributions from income you’ve already paid tax on. Your contributions grow tax-free while they’re in the TFSA account, and you aren’t taxed on any withdrawals. You can save up to $6,000 in your TFSA per year, regardless of your income.