What is TFSA (Tax-Free Savings Account)?
A TFSA is a Canadian account for residents aged 18 or older. Contributions are not deductible, but interest, dividends and gains earned inside are generally tax-free, including when withdrawn. Unused contribution room carries forward, and amounts withdrawn are added back to your room on January 1 of the next year.
Why TFSA (Tax-Free Savings Account) matters
Withdrawals are tax-free and do not affect federal benefits, which makes the TFSA flexible for both short and long goals.