Set up of Tax Free Savings Accounts (TFSA)

The Canadian government introduced Tax Free Savings Accounts (TFSA) as a new way of saving money without paying tax on the interest earned on the savings. The concept is that you can contribute up to $5,000 each year and not pay tax on the interest earned.
 
You do not need to deposit the maximum amount each year but the amount is cumulative once the account is opened. This means that if you have perhaps only saved $2,000 this year, you can deposit $8,000 next year. There is a great deal of flexibility in this type of an account. If you have deposited $5,000 this year and need to withdraw it next year, you will still be able to redeposit to the deposit maximum in future years.
 
Anyone who is a Canadian resident and 18 years and older can open an account.  Funds can be withdrawn tax free and do not affect your tax credits or deductions.
 
We have many companies that offer this product and would be happy to discuss what is right for you. Please contact us as soon as possible to arrange an appointment since we expect to be quite busy toward the end of the year.  You can get more information on how the TFSA works on the following web-site:  http://www.tfsa.gc.ca/