Searching for a new way to save money?

The Tax-Free Savings Account was introduced in January 2009 by the Federal government as a new way to save money. Canadians are able to contribute up to $5,000 per year without being taxed on investment income or capital gains.

Here's how the Tax-Free Savings Account works:

• Contribute up to $5,000 per year tax-free
• You are not required to have earned income to contribute
• Withdraw money for any reason – without being taxed
• Choose from a variety of investment options: Mutual Funds, GICs and Savings Deposits 
• You don't lose the contribution room if you make a withdrawal, but you do need to wait until the next year to re-contribute the money
• You can provide funds to your spouse for him or her to contribute to a Tax-Free Savings Account without being subjected to income attribution rules
• If you don't contribute the maximum amount, you can carry forward your unused contribution room indefinitely. For example, if you contribute $2,500 to your TFSA in 2009, your contribution room for 2010 will be $7,500 ($2,500 carried forward from 2009 plus $5,000 for 2010). 

Click here to use a Tax-Free Savings Account calculator.

A GP Wealth Management Financial Advisor is here to help.

The Tax-Free Savings Account is a great new tax-sheltered account and, with the right advice, it can help you achieve your investment goals. But it all depends on your personal goals and situation. For example, if you've used your RRSP contribution room or cannot make RRSP contributions, the TFSA could be a solution for you. Another great investment planning opportunity is to potentially use your TFSA for income splitting with your spouse. Talk to your GP Wealth Financial Advisor to create a plan based on your needs.

Get independent thinking working for you!

Click here for information on how to open a TFSA account with GP Wealth Management.