What is the proposed Tax-Free Savings Account (TFSA)?
A.1 The proposed TFSA is a registered savings account that allows taxpayers to earn investment income tax-free inside the account. Contributions to the account are not deductible for tax purposes, and withdrawals of contributions and earnings from the account are not taxable. Q.2 According to the 2008 budget, who would be eligible to open a TFSA? A.2 Any individual (other than a trust) who is resident in Canada and 18 years of age or older would be eligible to establish a TFSA. You would be able to open account at most financial institutions such as Canadian trust companies, life insurance companies, banks, and credit unions (the same institutions that are currently eligible to issue a Registered Retirement Savings Plan). You would have to provide the issuer with your social insurance number when the account is opened. You would be permitted to hold more than one TFSA.
