TFSAs are available to Canadians age 18+. You don’t need earned income to contribute.
TFSAs can be used to save for any goals you want: buying a home, buying a car, going on vacation, retirement, education or any other savings goal you have.
The annual TFSA contribution limit is indexed for inflation and rounded to the nearest $500. See the contribution limit for this year and past years on GetSmarterAboutMoney.ca.
You can take money out of your TFSA at any time (both your original contributions and any gains), without paying any tax. If you take money out, you can re-contribute it the following year, in addition to the annual maximum.
No, TFSA contributions cannot be claimed as a tax deduction on your tax return. The money you contribute to a TFSA is after-tax, but your savings grow tax-free within the plan and you do not need to pay tax on withdrawals.
To learn more about TFSAs, including penalties on over-contributions, reasons to open a TFSA, how they compare to RRSPs and making transfers between TFSAs, visit GetSmarterAboutMoney.ca.