Meeting Unforeseen Needs

• Michael and Diane, who earn a single-income as a couple, have been saving in their TFSA’s for seven years. Together, they have saved $53,000.
• Recently a thunderstorm has caused major damage and extensive repairs to the foundation of their house. In order to cover the costs of the repairs they withdraw $50,000 tax-free. They will be able to re-contribute this amount in the future.
• Using a TFSA Michael and Diane are able to cover the unforeseen emergency repairs and do so without reducing their available contribution room.
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This entry was posted on Friday, April 25th, 2008 at 8:19 am and is filed under Advice. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.