Tax-Free Savings Account (TFSA)

TFSA is a Federal Government Program that began in 2009. Any individual who is 18 years of age or older and who has a valid social insurance number (SIN) is eligible to open a TFSA. You can have more than one TFSA at any given time, but the total amount you contribute to all your TFSAs cannot be more than your available TFSA contribution room for that year. You can contribute up to your TFSA contribution limit. A tax applies to all contributions exceeding your TFSA contribution limit.
You can withdraw money from the TFSA at any time, for any reason, with no tax consequences, and without affecting your eligibility for federal income-tested benefits and credits. Withdrawing funds from your TFSA does not reduce the total amount of contributions you have already made for the year, Withdrawals will be added to your TFSA contribution room at the beginning of the following year.
Direct transfers must be completed by your branch at Khalsa Credit Union; If you withdraw the funds yourself and contribute the same funds to another TFSA, this transaction would not be considered a direct transfer and could have tax consequences.
For the year 2019, the maximum contribution allowed is $6,000