What is a Tax-free Savings Account (TFSA)?

A TFSA is an account in which contributions are not tax-deductible, but growth on investments and withdrawals are tax-free and are not treated as income. When a TFSA owner dies, the assets of the TFSA account can be rolled over to a spouse as an exempt contribution, which does not affect the spouse’s TFSA contribution room. Other beneficiaries will receive the balance tax-free on the date of death of the TFSA owner.

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