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Benefits of Tax-free savings Account | Life Armor

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Shikha Sardana
Benefits of Tax-free savings Account | Life Armor

A tax-free savings account allows you to put money aside and watch it grow tax-free. This allows Canadians residents (age 18 or above) to save for short term and long-term requirements. The income earned in TFSA is tax-free. Withdrawals from a TFSA are also tax-free as contributions are not tax-deductible. That means if you earn $5,000 on your investment, it is 100% yours to keep without any tax obligation. This money can be used as a cushion in case of emergency, like losing a job or for an unexpected expense like car or house repairs.

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Shikha Sardana
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