• Contributions are not tax deductible.
  • Withdrawals are tax free and do not reduce your contribution room.
  • You do not need to have earned income in order to contribute.
  • There is no requirement at any age to convert your plan to an income payment option, such as a registered retirement income fund (RRIF).

The following products are available with  TFSA registration:

  • Insurance GIC or Superflex
  • Guaranteed investment certificates (GIC or Sun GIC Max)
  • Mutual funds
  • Segregated fund contracts

No, government rules only permit individual plans. Spouses can have their own plan in their own name.

No, only individual plans are permitted. However, you can give your spouse money to deposit into his or her own TFSA plan.

Yes. Accumulation annuities and segregated fund contracts offered by life insurance companies allow you to appoint a beneficiary. Guaranteed investment certificates and mutual funds also allow for a beneficiary designation on registered money, except if you are a resident of Quebec.

If your spouse is the only beneficiary on your plan, he or she can choose one of the following:

  • Elect to become the plan holder (owner) of the plan.
  • Take the value of the policy in cash.
  • Transfer the value of this plan into his or her own TFSA without affecting contribution room.

If your beneficiary is not your spouse, the value of the plan (as specified in the terms of your contract) is paid directly to your beneficiary in a lump sum. Any interest earned on this amount after the date of your death is taxable to the beneficiary.

Upon your death, the TFSA's tax-free status will end and any investment income or interest earned after the date of your death will be taxable to the beneficiary. This tax will be due the end of the calendar year following the year of your death.

The assets in your TFSA may be transferred between spouses or common-law partners if there is a breakdown in a marriage or common-law partnership. This transfer will not create contribution room for the transferring spouse nor will it reduce contribution room for the receiving spouse.