How to Set-up a Tax Free savings account (TFSA) - You set up a TFSA through your bank, credit union or other financial service provider but they must be eligible to issue a TFSA. They are referred to as the issuer of the plan. Check with your bank if they are the issuers of the Tax Free saving account plan.
Just like very other government investment plans you As the Tax Free saving account (TFSA) holder, will need to provide your social insurance number (SIN) and date of birth to the issuer, so that the issuer can register your qualifying arrangement as a TFSA. Double check all documents, failing to provide this information or providing incorrect information may cause the registration of the TFSA to be denied, resulting in possible tax consequences.
You can have multiple Tax Free saving accounts at the same time, as long as the total amount of all contributions during the year does not exceed your TFSA contribution room (which is up to $5,000) for that year.
Self-directed Tax Free saving account (TFSA)
If you think you can do a better job than your bank you can set up a self-directed TFSA and manage your own investment portfolio by buying and selling a variety of different types of investments. If you are considering this type of arrangement make sure to consult with your financial institution and get some advice.
Need assistance on Tax Free savings account, you can call the individual Income Tax Enquiries line at:
1-800-959-8281
Tags: account, free, savings, SET-UP, tax, TFSA