Help with the TFSA Contribution Page

A Tax-Free Savings Account (TFSA) is a way for residents of Canada to set money aside, tax-free, throughout their lifetime. Contributions to a TFSA, administration fees and the interest on money borrowed to invest in a TFSA are not tax deductible. The income generated in the TFSA is tax-free when withdrawn.

Information displayed on the TFSA pages includes links to your contribution room limit, and transaction summary.

By clicking on Contribution Room, you will see what your TFSA contribution room is for years starting in 2009.

By clicking on Transaction Summary, you will see all your transactions made to your TFSAs.

Contribution Room:

This is your TFSA contribution room limit for the applicable years. By clicking on Calculation of your 20XX TFSA contribution room, this will bring you to the screen showing how the amount was calculated.

Note: You must be 18 years of age or older and be a resident of Canada to accumulate TFSA contribution room.

Calculation of your TFSA contribution room

This is the calculation of your TFSA contribution room on January 1st of the year indicated. As well, it shows your total contributions to and withdrawals from your TFSA during the preceding year.

The calculation of your TFSA contribution room for a particular year after 2008 is an amount, either positive or negative, on January 1st, that is determined by your TFSA contribution room on January 1st of the year prior to that particular year:

MINUS

• the total of all TFSA contributions made by you in the prior year other than a qualifying transfer or an exempt contribution;

PLUS

• the total of all TFSA withdrawals made under your TFSA in the prior year, other than a qualifying transfer or a specified distribution; and
• the TFSA dollar limit for the particular year if, at some point in that year, you were at least 18 years old and a resident of Canada. In all other cases, the amount is nil.

TFSA transaction summary:

This is your TFSA transaction summary.

Your current year transactions are only available in the following year.

By clicking on Transaction Summary, this will bring you to your 20XX TFSA transactions.

Transactions are listed by financial institution, TFSA number, total contributions and withdrawals to your TFSA(s).

Definitions

Exempt contribution
A designated contribution made by a TFSA holder's survivor in connection with a payment received from the deceased holder's TFSA.

Holder
The individual who entered into the TFSA and, after their death, the individual's surviving spouse or common-law partner if designated as the successor holder of the TFSA.

Qualifying transfer
A direct transfer between a holder's TFSAs, or a direct transfer between a holder's TFSA and the TFSA of their current or former spouse or common-law partner if the transfer relates to payments under a decree, order, or judgment of a court, or under a written agreement relating to a division of property in settlement of rights arising from the breakdown of their relationship and they are living separate and apart at the time of the transfer.

Specified Distribution
A distribution from a TFSA to the extent that it is, or is reasonably attributable to, an amount that is:

• an advantage;
• specified non-qualified investment income;
• income that is taxable in a TFSA trust; or
• income earned on excess contributions or non-resident contributions.

A specified distribution does not create or increase unused TFSA contribution room in the following year, nor does it reduce or eliminate an excess TFSA amount.

Survivor
A survivor is an individual who is, immediately before the TFSA holder's death, a spouse or common-law partner of the holder.

Successor holder
A spouse or common-law partner named by the deceased as the successor of the TFSA. The spouse or common-law partner becomes the new account holder.

A successor holder designation is effective only where TFSA beneficiary designation is permitted under applicable provincial and territorial law and only if the survivor acquired the entire deceased holder's rights under the TFSA including the right to revoke any previous beneficiary designation.