TFSA is your “Tax Free Saving Account.” You can open an account with a financial institution to deposit the money within your contribution limit and room for the year. Any income generated in this account is tax-free throughout your life time. However, you have to be 18 Years of age and a with a valid Social Insurance Number (SIN). The amount you can contribute to your tax free savings account is based on your contribution limit which is communicated to you by Canada Revenue Agency every on your notice of assessment. If you contribute more than your limit, Canada Revenue Agency will charge you a penalty.