Tax-Free Growth: Income earned within a TFSA, such as interest, dividends, and capital gains, is not subject to taxation, even when withdrawn.

Flexible Savings: TFSAs can hold various types of investments, including cash, GICs, stocks, bonds, mutual funds, and ETFs.

Contribution Room: Each eligible individual accumulates contribution room each year, starting from the year they turn 18. Contribution room is not based on earned income and accumulates even if no contributions are made. Unused contribution room can be carried forward to future years.

Withdrawal Flexibility: Funds can be withdrawn from a TFSA at any time, for any purpose, without penalty. Withdrawals do not affect an individual’s eligibility for government benefits or tax credits, and the withdrawn amount can be recontributed in future years.

No Age Limit for Contributions: There is no age limit for contributing to a TFSA, unlike RRSPs which have contribution restrictions for individuals over a certain age.

No Impact on Taxable Income: Contributions to a TFSA are made with after-tax dollars and do not affect an individual’s taxable income or tax bracket.

Who are Eligible: Any individual who is a resident of Canada and has a valid Social Insurance Number (SIN), and who is 18 years of age or older, is eligible to open a Tax-Free Savings Account (TFSA). Additionally, non-residents of Canada who meet these criteria are also eligible to open a TFSA, but contributions made while a non-resident may be subject to a 1% tax for each month the contribution remains in the account.

Read This Blog for the Pro TFSA: https://capitalizedmoney.com/capitalizedmoney-blog/maximizing-savings-with-tax-free-savings-accounts-tfsa/