Qualified Investments on TFSA

Chapter 5 page 18

Individuals can invest the amounts on TFSA in a wide variety of products such as GICs, savings accounts, stocks, bonds, or mutual funds. The investments allowed are basically the same of an RRSP.

Withdrawals:

Withdrawals can be made from a TFSA at any time. There's no limit to how much can be withdrawn and there's no penalty or tax on withdrawals. One can later replace (or recontribute) the money withdrawn, but there's no obligation.

1 comments:

Mauricio said...

Contributions in a TFSA

The contribution room every year consists of the TFSA dollar limit for that year ($5,000 in 2009) plus any withdrawals one made in the preceding year, along with any unused contribution room.

The Canada Revenue Agency (CRA) will determine the TFSA contribution room for each eligible individual.

The annual contribution room will be indicated on the notice of assessment. If someone contribute more than the room allowed one will be taxed at the rate of 1% of the excess contribution every month.

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