how tax free savings accounts work
tax free savings accounts were introduced in canada in 2009 they were intended to help canadians save and invest their money throughout their lives the tfsa account lets people save money for any reason not simply for retirement for example you can save for a car for your education to buy a home to set aside extra living expenses and or for retirement what s more you don t need to have earned income to contribute while there are exceptions the money earned by investments in a tfsa is generally not taxed 1 plus savers maintain control over their tfsas they can make contributions decide on investments and withdraw funds whenever they wish without penalty 