At what age can you open a TFSA account?
You can open a tax free savings account starting at the age of 18.
At what age does a person no longer qualify to have a TFSA account?
Unlike an RRSP, there is no such limitation with a tax free savings account. You may keep it for as long as you live.
What is maximum contribution room you can put towards a TFSA account?
Can I only open one TFSA account?
No, you can open as many TFSA accounts with as many financial institutions as you wish. However, you need to make sure that the combined funds that you have with all the banks does not exceed your contribution limit. Otherwise you will incur a penalty.
For example, with the contribution limit in 2009 being $5000, if you decided to open two accounts and have deposited $2800 in “Bank A”, then in “Bank B” the maximum you can contribute is $2200 for the year.
How much money can you withdraw each year from your account in order to avoid paying taxes on it?
There is no limit. You can withdraw all of your funds whenever you wish.
What is the deadline each year to contribute funds into a TFSA account?
Technically there is no deadline as you can contribute funds any time of the year.
What is the excess/over contribution penalty rate?
You will have to pay a penalty of 1% every month for any excess funds in your TFSA accounts that exceed your contribution limitation. For example, if the limit is $5000/month and one month you invest another $200 still then you will have to pay a 1% penalty on that $200 which in this case means $2.
If you have more questions, feel free to use the contact form and hopefully we can build a comprehensive list to answer everyone’s tax free savings account questions.