Financial Planning -> TFSAs
Income Tax Act S. 146.2, 207.01 to 207.07
Tax-free savings accounts are available for Canadian residents who are 18 years of age or older. The first tax year that they were available was 2009.
There is no deadline for contributions to a TFSA, as the unused contribution room is carried forward into the next year. However, a withdrawal in any year increases the TFSA room in the following calendar year. Thus, if you are thinking of making a withdrawal close to year end, make sure it is done by December 31st, in order to have the withdrawal amount added back to the TFSA room sooner.
In a tax-free savings account:
On October 16, 2009 the Minister of Finance announced amendments to the Income Tax Act to strengthen the rules applicable to Tax-Free Savings Accounts. The amendments apply to transactions which occur after October 16, 2009. The draft legislation and explanatory notes were released by the Department of Finance on April 30, 2010. The amendments were included in Bill C-47, which became law in December 2010. These amendments:
Information on the changes is included in our TFSA articles below.
Tax Tips: Everyone should
have a tax-free savings account!
Revised: November 06, 2015
Copyright © 2002 - 2016 Boat Harbour Investments Ltd. All Rights Reserved See Reproduction of information from TaxTips.ca