TFSA Frequently Asked Questions (FAQ)

  1. What can happen during a divorce or breakdown of a common-law partnership?
    Under these circumstances, funds may be transferred to or from your spouse or common-law partner’s Tax-Free Savings Account. This transfer will not free up contribution room in the transferor’s TFSA and will not be counted against the transferee’s contribution room.
  2. Is the interest on funds borrowed for a Tax-Free Savings Account contribution tax deductible?
    No, the interest in not tax deductible.
  3. Are there any restrictions on withdrawing from my Tax-Free Savings Account?
    Generally, you can withdraw any amount for any reason; however, this will depend on the flexibility of the investment. Keep in mind that you will have to wait until the next year before you can use the newly freed up contribution room.
  4. Can I contribute to my spouse’s or common-law partner’s Tax-Free Savings Account?
    Yes, the amount that you can contribute is dependent on the contribution room your spouse or common-law partner has in their TFSA.
  5. Can I have more than one Tax-Free Savings Account?
    Yes, you are allowed to have numerous TFSAs at various financial institutions. However, it is useful to keep in mind that annual contribution limits is divided between all your TFSA accounts.
  6. Can the funds in a TFSA be used to secure a loan?

To open a TFSA, visit your Community Savings branch.