Tax Free Savings Account
December 02, 2008
In our continued effort to keep you informed of the latest in financial product developments, we would like to advise you of the recent tax savings incentive program introduced by the Canadian Government.
Until now, most Canadians have held their savings in a Registered Retirement Savings Plan (RRSP), where they could claim a deduction for their contributions and then defer tax on growth until retirement.
On January 1, 2009, a new savings vehicle called a Tax-free Savings Account (TFSA), becomes available to Canadians. Whether you are saving for the short term (0-5 years) or for the longer term (6 years and beyond) a TFSA can be a valuable addition to your financial plan.
A few of the benefits of a TFSA
• Save tax free and still have the flexibility to withdraw at any time for any purpose
• Unused contribution room can be carried forward indefinitely
• Choice from a range of investments (Manulife Bank accounts, GICs, segregated funds, mutual funds)
• No tax on any money that you withdraw from the TFSA
• All growth within the account is sheltered from tax.
Please open the following document to find out more about the Tax Free Savings Account or call our office. TaxFreeSavings_Account.pdf
