A TFSA (Tax Free Savings Account) is a great way for Canadians to help save money for their financial goals in life. Introduced in 2009 by the Canadian government, the TFSA allows Canadians to invest their money while exempting their investment earnings from taxation.

In order to open a TFSA account, you must have a valid Canadian Social Insurance Number and you must be 18 years of age or older. If you are a non-resident and you still have a valid SIN, you can still hold your TFSA; however, you cannot make contributions to the TFSA. If the non-resident does make a contribution, the contribution will but subject to a monthly 1% tax. So, contributing to a TFSA as a non-resident is not recommended. There is no age limit to investing in TFSA's unlike RRSPs where the age limit is 71.

It is very important to note that there is a limit to how much you can invest into your TFSA; this is known as your annual TFSA contribution room. Investment income earned through your TFSA investments DO NOT affect your contribution room. As an individual, starting in 2009 you accumulate TFSA contribution room during the time you are eligible to open a TFSA. In addition, any unused contributions accumulate and carry forward. The annual contribution limits for 2009, 2010, 2011 and 2012 was $5,000. The annual contribution limits for 2013 and 2014 was $5,500. Be sure to keep track of your contributions. Any amounts in excess of the contribution limit will be taxed at 1% per month.

TFSA's are not simply cash savings accounts. They can be structured and modified to meet your individual financial needs. TFSA's can hold GIC's, bonds, mutual funds, stocks, and other eligible investments. All investment returns made in your TFSA are tax free. You can also hold more than one TFSA account, however the total contributions made to all accounts cannot exceed the contribution limit.

Your funds can be freely withdrawn anytime and you do not have to pay taxes or any penalties/fees. TFSA withdrawals do not have any effect on government benefits or assistance programs, meaning low income earners can generate tax free income without impacting the social support they receive.

All investors should look to allocate their funds in a manner that reduces their tax liability and the TFSA is an excellent vehicle for Canadians to generate tax-free investment income. The financial advisors at GTA Wealth Management can give you professional investment advice regarding TFSAs and how to easily get started. Our financial advisors have a proven track record of maximizing investment returns with many happy clients.

Do not hesitate any longer, let GTA Wealth help you start making tax free investment returns with a TFSA. Contact or call GTA Wealth Management toll free 1 855 GTA WLTH (855 482 9584) to accelerate your ride to financial independence. A professional wealth management financial advisor is ready to serve your wealth management, tax return and planning needs. GTA Wealth Management Inc. has three convenient locations in Mississauga, Toronto and Markham to serve you.