What is a Tax-Free Savings Account (TFSA) and how does it work?

Here is some useful information about TFSAs:

The TFSA is a government-registered account. It allows you to grow your savings tax-free, regardless of your annual income.
Withdrawals are tax-free.
Unused contribution room can be carried forward to future years.
You can withdraw money from your TFSA at any time and for any purpose.
You can contribute amounts withdrawn from your TFSA in the year following the withdrawal without reducing your contribution room.
Neither income earned in a TFSA nor withdrawals from the account affect your entitlement to federal income-tested benefits or credits.

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