Starting in 2009, Canadians aged 18 and older can save up to $5,000 every year in a Tax-Free Savings Account (TFSA).  Assets held within the account will not be subject to capital gains, interest, or dividend taxes.

Some key benefits of the TFSA are:

• You can contribute up to $5000 per year tax-free
• You are not required to have earned income to contribute
• You can withdraw money for any reason without being taxed
• You don’t lose the contribution room if you make a withdrawal, but you do need to wait until the next year to re-contribute the money
• You can provide funds to your spouse for him or her to contribute to a TFSA without being subjected to income attribution rules
• If you don’t contribute the maximum amount, you can carry forward your unused contribution room indefinitely.