Introduced by the federal government in 2009, the TFSA is a relatively new way of saving. A Group TFSA works the same way as an individual TFSA.
Five things to know about Group TFSAs
- All TFSA investment earnings are tax-sheltered, but contributions are not tax deductible.
- As of January 1, 2013, you (or you and your employer) can contribute up to $5,500 each year. If you don’t contribute the full amount each year, you can carry forward the unused amounts.
- You decide how your money is invested from the investment options your employer makes available.
- You can take money out when you want, for any reason, without paying any tax.
- If you take money out, you can re-contribute it the following year, in addition to the annual $5,500 maximum, however re-contributions for 2009 to 2012 are based on the previous $5,000 contribution limit.
Learn more about TFSAs.
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