The Tax-Free Savings Account (TFSA) is a great savings option for people in all income brackets. Economic Action Plan 2015 has proposed to increase the annual contribution limit from $5,500 to $10,000, starting in 2015 to put more money back in the pockets of Canadian families.
Here are six things you need to know about the TFSA:
1. More than 10.7 million Canadians have TFSAs;
2. Any investment income earned in a TFSA is tax-free;
3. Withdrawals from a TFSA are tax-free and available at any time;
4. More than 25 percent of TFSA users are seniors;
5. Nearly sixty-five percent of TFSA users earn less than $60,000 a year;
6. Any amount up to $10,000 can be deposited per year into a TFSA.
So, whether you want to save for school textbooks or a down payment on a house, the TFSA will help you and Canadians from all walks of life save!