The Tax-Free Savings Account

Saving just got a whole lot easier!

The Tax-Free Savings Account (TFSA) program began in 2009. It is a way for individuals who are 18 and older and who have a valid social insurance number (SIN) to set money aside tax-free throughout their lifetime. Contributions to a TFSA are not deductible for income tax purposes. Any amount contributed as well as any income earned in the account (for example, investment income and capital gains) is generally tax-free, even when it is withdrawn.  Administrative or other fees in relation to TFSA and any interest or money borrowed to contribute to a TFSA are not tax deductible. 

Topics

• Tax-Free Savings Account
• How to open a Tax-Free Savings Account
• Contributions, withdrawals, and transfers
• Types of permitted investments
• Tax payable on Tax-Free Savings Accounts
• Impact on your government benefits and credits
• Life events
• Common mistakes to avoid when contributing to your Tax-Free Savings Account

Forms and publications

• Guide RC4466, Tax-Free Savings Account (TFSA), Guide for Individuals
• Form RC240, Designation of an Exempt Contribution Tax-Free Savings Account (TFSA)
• Form RC243, Tax-Free Savings Account (TFSA) Return
• Form RC243-SCH-A, Schedule A - Excess TFSA Amounts
• Form RC243-SCH-B, Schedule B - Non-Resident Contributions to a Tax-Free Savings Account (TFSA)
• Form RC343, Worksheet - TFSA contribution room

Related topics

• Savings and pension plan administration