The Government of Canada introduced the Tax Free Savings Account, or TFSA, in 2009 as a way for Canadians to save their money without having to pay income tax on interest earned. This great savings option is open to all Canadian residents who are 18 years of age or older and have a valid Social Insurance Number. Furthermore, a spouse can contribute to their spouse’s TFSA account without income attribution rules applying. Any income and gains within a TFSA account are not subject to income tax.
Members should check their CRA tax return remittance to confirm how much contribution room is available. Withdrawals can be made at any time for any reason and are not subject to income tax like other registered plans are. In addition, you can re-contribute any such withdrawals as the withdrawal amount is added back to your future contribution limit in the subsequent year.
For additional details please visit the Canada Revenue Agency website at: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/tfsa-celi/menu-eng.html
We recommend that every eligible Member take advantage of this valuable savings tool and open up an account at PARAMA as soon as possible. A PARAMA TFSA is another great way for you to save money!
If this is your first TFSA with PARAMA, you will need to visit one of our branches to complete and sign the required documentation. You may expedite your visit by completing and submitting these on-line forms beforehand.