Tax Free Savings Account -Go open one!!

GracieLou · #1 01-02-2013, 08:59 PM

The easiest way to think of them is keep contribution room and interest earned seperate. For the first 4 years each person was allowed $5,000 and this year they increased it to $5,500. So if anyone has not contributed yet they can do a total of $25,500. Interest made does not affect the amount you can contribute. If you withdraw from a TFSA you should wait until the next year to contribute again or you could over contribute for that year, depending of course on the amount you withdraw/deposit.

Reef Pilot · #2 01-02-2013, 09:23 PM

Quote:

Originally Posted by GracieLou

If you withdraw from a TFSA you should wait until the next year to contribute again or you could over contribute for that year, depending of course on the amount you withdraw/deposit.

Yeah, that seems to be a little quirk in how it works, not sure why. But at least you don't lose the room, and get it back next year.

Here is a little FAQ that helps explain more about the TFSA.
http://www.tdwaterhouse.ca/products-.../FAQ-index.jsp