- No Taxes on Investments: No matter how much you invest or earn in your TFSA, you do not have to pay taxes on it
- No Taxes on Withdrawals: You can take out the money at any time without paying taxes on it
- Variety of Investments: The types of investments in a TFSA can include cash, mutual funds, bonds, stocks, GICs, and ETFs
- Age Requirement: There is a minimum age of at least 18 years or older to open a TFSA, but no maximum age
- Only for Canadians: You must be a Canadian resident and have a valid Canadian Social Insurance Number
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- Any unused contribution room will be carried forward, so you will be able to invest more in the future if needed.
- The amount withdrawn from your TFSA can be replaced, as long as it fits within the contribution room
- You and your spouse or common-law partner can contribute to each other’s TFSA as long as it is within the contribution limit. Upon death, TFSA assets can be transferred to a spouse tax-free.
- There is a 1% penalty per month on the overcontributed amount
- The money from the account can be used towards anything