Jan
30
A coworker was just talking to me about a new type of savings account the Canadian government has set up for ‘09, called the Tax Free Savings Account or TFSA.
I’m not much of a financial expert, but here’s what I know. An RRSP has limitations. While the contributions are tax-deductible, taking money out is taxable. This includes the original principle, and any interest. So you pay less tax in the end. However, RRSP’s have a lot more limitations and penalties than a TFSA. Here’s the basics of it: