While earnings on assets held in a Tax Free Savings Account (TFSA)will not be taxed while the assets are in the plan, the accumulated income will be subject to tax when it is withdrawn from the plan.

Question

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Earnings on assets held in a TFSA are not subject to tax when withdrawn from the plan, as long as they were earned within the plan. This is the main advantage of a TFSA compared to a traditional Registered Retirement Savings Plan (RRSP), where withdrawals are subject to income tax.

While Earnings on Assets Held in a Tax Free Savings