Get ready for a new way to grow your savings

Starting January 2009, you will have another great way to grow your savings. With the introduction of the new Tax-Free Savings Account (TFSA) by the Federal Government, Canadian residents age 18^* and older will be able to contribute up to $5,000 per year without being taxed on investment income or capital gains. And while there is no tax deduction for contributions, the Tax-Free Savings Account is extremely flexible and can be used to help meet both short- and long-term investment goals.

Key Benefits of the Tax-Free Savings Account:

	Contribute up to $5,000 per year tax-free
	You are not required to have earned income to contribute
	Withdraw money for any reason – without being taxed
	Choose from a variety of investment options: RBC Funds, RBC GICs and RBC Savings Deposits
	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 Tax-Free Savings Account without being subjected to income attribution rules
	If you don’t contribute the maximum amount, you can carry forward your unused contribution room indefinitely. For example, if you contribute $3,000 to your TFSA in 2009, your contribution room for 2010 will be $7,000 ($2,000 carried forward from 2009 plus $5,000 for 2010).

RBC is here to help.

The Tax-Free Savings Account is a great new tax-sheltered account and, with the right advice, it can help you achieve your investment goals. But it all depends on your personal goals and situation. For example, if you’ve used your RRSP contribution room or cannot make RRSP contributions, the TFSA could be a solution for you. Another great investment planning opportunity is to potentially use your TFSA for income splitting with your spouse. Don’t forget, you can always use TFSA-Matic™ to make regular ongoing contributions. Talk to an RBC advisor to create a plan based on your needs.

For more information:

For more information on the Tax-Free Savings Account and to find out how RBC can help you reach your financial goals, visit your local branch or call us at 1-800-463-3863.

^* The age of majority is 19 in certain provinces and territories.

There may be commissions, trailing commissions, management fees and expenses associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed; their values change frequently and past performance may not be repeated.

Financial planning services and investment advice are provided by Royal Mutual Funds Inc., a member company under RBC Wealth Management. Royal Mutual Funds Inc., RBC Asset Management Inc., Royal Bank of Canada, Royal Trust Corporation of Canada and The Royal Trust Company are separate corporate entities, which are affiliated. Royal Mutual Funds Inc. is licensed as a financial services firm in the province of Quebec.

^TM Trademark of Royal Bank of Canada