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A TFSA is a Tax-Free Savings Account. You can contribute to your TFSA within certain limits like an RRSP. Any income earned within the plan is not subject to income tax. The biggest difference is that your can withdraw funds from the TFSA and not pay tax on the withdrawal. The bonus is that any withdrawals can be added back in the future as a contribution. You need to wait until the next calendar year at a minimum. There is no contribution deadline as contributions carry forward. 

The maximum contribution for 2026 is $7,000 and, the cap on TFSA contributions is $109,000 if you have not contributed from the plan’s inception 2009. In either case, you should check with your CRA My Account to confirm your limit for the year. Any over contribution is taxed at 1% per month until the withdrawal has been made. 

Any Canadian resident who is the age of majority and has a SIN number can open a TFSA. The age of majority varies by province, with some being 18 and others 19. Regardless, TFSA contribution room begins at age 18.  

No. unlike an RRSP your contribution room for a TFSA is not subject to earned income, it is based on age.

No. What you would do is gift the money to your spouse to contribute to the TFSA. Unlike a Spousal RRSP there is no 3-year income attribution rule, and the assets and any future growth would be theirs 

Withdrawals from a TFSA do not affect income tested benefits like Old Age Security (OAS) or the Guaranteed Income Supplement (GIS). There will be no claw back based on TFSA withdrawals 

Just like any other registered plan you should designate a beneficiary for your TFSA. Where there is a spouse or common law partner, you should designate them as successor holder. As a successor holder the TFSA passes through without a taxable event and the successor assumes the account. This does not affect the successor holders TFSA contribution limits.

If your spouse or partner was designated as a beneficiary instead of successor holder, they have up to December 31st of the year of death to contribute any payments from the TFSA to their TFSA plan. This form, needs to be filed within 30 days after the contribution to the spouse’s TFSA account to affect an “exempt contribution”. Otherwise, it will affect the spouse’s TFSA contribution room. The maximum that can be moved into the new TFSA is the value at date of death.

If you designate a beneficiary, then the account passes through to the beneficiary. Any payment up to the market value on the date of death from the TFSA to the beneficiaries is not taxable. Any income earned after the date of death is taxed until the assets are transferred.

By designating a successor holder or beneficiary, probate has been avoided. If you designate the estate as beneficiary or and no successor holder or beneficiary are designated, then the TFSA forms part of the estate and the funds are subject to probate and are distributed based on the will instructions.

Yes, you can trade any qualified investment inside your TFSA. If your trading is excessive, then CRA can classify you as a day trader. If this happens, then your TFSA may be subject to income tax. This has been challenged in the past and the CRA has won their court case. 

You are still able to keep your TFSA account. No taxes will be charged against earnings or withdrawals. For the period you are a non resident, you will not accrue TFSA contribution room.

During a marriage breakdown, the TFSA account may be considered in the Net Family Property (NFP) calculation. If a TFSA balance is required to be transferred to a spouse, then a transfer form from your institution is required.