|Tax Free Savings Account Questions|
1. What is the minimum amount to open a TFSA with CFF Bank?
There is no minimum amount to open a CFF Bank TFSA. There is a minimum of $25 per deposit for the Automatic Savings Plan (ASP).2. What is the minimum to contribute to my TFSA with CFF Bank?
There is a contribution minimum (weekly, bi-‐weekly, semi-‐monthly, monthly) for the Automatic Savings Plan (ASP) in the savings account of $25. The GIC minimum deposit is $1,000.
3. How much can I contribute to my TFSA?
Every Canadian who was 18 or older in 2009 has $5000 per year from 2009 to 2012 and $5500 in available room for 2013 and 2014.
You can look up your personal contribution limit at the Canada Revenue Agency website: www.cra.gc.ca/myaccount Or by calling Tax Information Services (TIPS): 1-800-267-6999
4. What investments can I have in a TFSA with CFF Bank?
CFF Bank currently offers a high interest savings account and GIC’s. Investment offerings vary by institution.
5. What are the fees with a CFF Bank TFSA?
There are currently no fees with a CFF Bank TFSA.
6. Can my wife and I have a TFSA together (jointly held)?
TFSA’s can only opened by an individual but spouses may contribute to each other’s TFSA subject to individual contribution limits.
7. Do I get a tax credit for contributing to my TFSA?
No. Unlike an RSP there is no tax credit for contributing to a TFSA. There is no tax on the growth within a TFSA and no tax consequences for withdrawing money from a TFSA.
8. Can I have more than one TFSA?
You can have as many TFSA’s as you like. The limit is based on your individual contribution limit as reported to the CRA (See #3 above).
9. What happens if I put too much money into my TFSA?
CRA will assess a penalty of 1% of the excess amount for every month it remains in your TFSA.
10. If I take money out of my TFSA can I put it back in?
You can contribute within the same year if you have available contribution room or you can recontribute your withdrawal in the next calendar year. It does not impact next year’s contribution room.
11. Can I open a TFSA for my child?
The minimum age to open a TFSA is the age of majority in the province of residence (18 in most provinces).
12. Can I transfer money from another TFSA to my TFSA with CFF Bank?
We can accept transfers from TFSA’s at other institutions using our TFSA Transfer Form. Please refer your client to the Customer Sales and Service Centre (CSSC). The relinquishing institution may have administrative or transfer fees to do so.
13. What is the advantage to appointing my spouse as a successor holder on my TFSA?
Appointing your spouse as the successor holder allows funds to roll over to them without tax consequences or affecting their TFSA contribution room.
14. What happens to my TFSA when I die?
If your spouse is named as your successor holder the balance of your TFSA rolls over to them without tax consequences and without affecting their TFSA contribution room. If there is no successor holder but you have named a designated beneficiary the beneficiary receives the proceeds of the TFSA and can designate all or a portion as an exempt contribution to their TFSA without effecting their contribution room. If there is no successor holder or designated beneficiary named on the TFSA the funds are paid to your estate and distributed in accordance with the terms of your will.
15. What happens to my TFSA if my spouse and I divorce?
If there is a breakdown of a marriage or common-‐law relationship funds can be transferred from one individual’s TFSA to another’s if entitled under a decree, order, or judgment of a court order or under a written separation agreement. Under these conditions it will not reduce the recipient’s TFSA contribution room. It will not be considered a withdrawal from the transferor’s TFSA and as such, will not be added back into their contribution room the following year.
16. Are there any fees to withdraw money from my TFSA?
There are no fees to withdraw funds from high interest savings account portion of the CFF Bank TFSA. The GICs are not cashable prior to the end of their term except on death.
17. Can I access my CFF Bank TFSA from the CFFBANK.CA website?
Yes. You can transfer funds from your CFF Bank EASYONE Account to and from your CFF Bank TFSA.
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