How the Tax Free Savings Plan Works

• For Canadian residents, 18 and over who have filed a tax return
• Up to $5,000.00 contribution each year, beginning in 2009
• Carry forward your unused contribution room
• Contribution is not tax deductible, however interest is not taxed – keep what you earn!
• Funds can be withdrawn anytime with no penalty, you can keep that contribution room and re-deposit the next year
• Contribution will not affect eligibility for income-tested benefits  e.g. Old Age Supplement, Canada Child Tax Benefit or Guaranteed Income Supplement
• Flexible options
• Save faster, keep what you earn!

The Federal Government provides additional information about the Tax Free Savings Account on their site

http://www.cra-arc.gc.ca/gncy/bdgt/2008/txfr-eng.html

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