Group tax-free savings account (TFSA) program
Offer your employees an easy way to make their contributions to a tax-free savings account. Employees can save for any purpose while earning investment income tax free. It also serves as an alternative to the Canada Savings Bond Program, and generally provides a better return on investment.
The program is available to any Canadian resident age 18 years or older. Features include:
- $5000 contribution limit for 2011
- Choice of investment savings accounts or guaranteed investment certificates (GICs) with a 100% deposit guarantee
- Withdrawals are not reported as taxable income or subject to income tax
- Unused contribution room accumulates each year and can be carried forward indefinitely
- No maximum age limit