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Showing posts from October, 2008

Tax-Free Saving Account in ING DIRECT

A while back, the government of Canada suddenly realized that Canadians did not save their money as much as they hoped. So, to goad Canadians into saving, they introduced the Tax-Free Saving Account (TFSA) that basically allows up to $5,000 per year contribution to grow tax-free. How the TFSA Works Starting in 2009, Canadians aged 18 and older can save up to $5,000 every year in a TFSA. Contributions to a TFSA will not be deductible for income tax purposes but investment income, including capital gains , earned in a TFSA will not be taxed , even when withdrawn. Unused TFSA contribution room can be carried forward to future years. You can withdraw funds from the TFSA at any time for any purpose. The amount withdrawn can be put back in the TFSA at a later date without reducing your contribution room. Neither income earned in a TFSA nor withdrawals