YES – the TFSA could be the best place for you to save now so you can take advantage of the RRSP tax deduction later on in life when you earn more money and your income tax bracket is higher. Watch the TFSA contribution room. NO – So, you’re likely in a higher tax bracket. … Free money is free money.
How much money can you put in a tax free savings account?
If you‘ve never opened a TFSA, you can contribute up to $63,500 today: $5,000 for each year from 2009 to 2012; $5,500 for each of 2013 and 2014; $10,000 for 2015; $5,500 for each of 2016, 2017 and 2018; and $6,000 for 2019.
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 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income earned in the account (for example, investment income and capital gains) is generally tax-free, even when it is withdrawn.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 deductible.
