Tax Free Savings Account
Became available Jan. 1 2009, and is a registered account in which investment earnings accumulate tax free.
Taxpayers over the age of 17 may contribute up to $5000.00/yearly to such an account. If the tax payers contribution room is not used in one year it may be carried forward to the next year allowing for a larger contribution in that year.
TFSA are not reported as income nor will they be included in income for any income tested benefits, such as CCTB (Canada Child Tax Benefit) and GST tax credit.
Excess contribution to TFSA will be subject to a tax of 1%/month.