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.

This entry was posted on Friday, April 25th, 2008 at 8:19 am and is filed under Tax Free Savings Account Applications. 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.