TFSA account

Use this form to edit the properties of a TFSA (Tax-Free Savings Account). To change its investments or balance, select Edit investments. The account balance is calculated as the sum of its investments.

Investment income and growth within a TFSA are generally tax-free. Contributions are not deductible from your taxable income, and withdrawals are generally not taxable.

Unused TFSA contribution room is carried forward. Amounts withdrawn are added back to your available contribution room at the beginning of the following calendar year, not immediately.

Someone else, such as your spouse, may give you money to contribute to your TFSA. However, the TFSA and its contribution room belong to the account holder.

Your current TFSA contribution room is entered when you provide the information required to run the TIME MACHINE. It should reflect your available room after accounting for contributions already made during the current year.

The TIME MACHINE increases your available TFSA room each year by the applicable annual limit and carries forward any unused room. Deposits made to a TFSA reduce the available room. Withdrawals are added back to the available room in the following calendar year.

The TIME MACHINE will not deposit more than the available TFSA room it has calculated for the account holder.

An existing TFSA cannot be changed to another account type. If the account type was entered incorrectly, you may need to create the correct account and delete the TFSA.

A TFSA can have only one owner and cannot be held jointly. If you have a spouse, you can change the owner to correct an input error or reflect a transfer or inheritance recorded in the MoneyReady App.

Changing the owner may affect automatic saving and withdrawal priorities. The priorities of the affected accounts will be reviewed by the TIME MACHINE.

You can select your spouse, your dependent(s), or your Estate as beneficiary.

If your spouse is selected as beneficiary, the TIME MACHINE will transfer ownership of the account to your spouse at your passing. The beneficiary of the transferred account will then become the new owner’s Estate.

If the growth rate of the Cash investment has not yet been entered, the field Growth per year (%) of Cash investment may be shown. Once the rate has been saved, you can change it by editing the Cash investment.

A minimum positive balance can be set for the account, and it will be honoured by the TIME MACHINE.