Discover everything you need to know about TFSA (Tax Free Savings Account) account with Moomoo Canada.
2. How to open a TFSA account?
A Tax-Free Savings Account (TFSA) offers customers the opportunity to save money tax-free over their lifetime. Each calendar year, customers can contribute up to the annual TFSA dollar limit, along with any unused contribution room from previous years and the amount withdrawn in the prior year.
Notices:
Investments made inside a TFSA are not taxed.
Withdrawal from TFSA is not a taxable event.
Contributions to TFSA are not tax deductible.
No upper age limit to maintain a TFSA account.
Only an individual account in the name of the plan holder can be opened.
Outbound or inbound transfers of RRSP/TFSA accounts (to or from another financial institution) via Free of Payment (FOP) or Direct Registration System (DRS) are not supported.
Only allows outbound transfers of RRSP/TFSA accounts (to another financial institution) through the fully-electronic/ATON™ (Account Transfer Online Notification) transfer system.
Manual or "non-ATON" RRSP/TFSA inbound transfers (from another financial institution) are supported.
You can submit an application in the app or on the website. Click here to check the detailed account opening instructions.
There is no account maintenance fee. Withdrawals from your TFSA account are only available in CAD and not subject to additional account-specific charges.
Your TFSA contribution room refers to the maximum amount you are permitted to contribute to your TFSA account. To obtain detailed information about your contribution room, please click here.
For CIPF (Canadian Investor Protection Fund) coverage purposes, a TFSA account is treated as part of a customer's general account. Therefore, a TFSA will be combined with other eligible accounts (Non-RRSP) for up to $1 million coverage.
TFSA account holders have the option to designate their spouse or common-law partner as the successor holder of the account. This means that in case of the original holder's death, the spouse or common-law partner will become the new account holder.
If the TFSA account holder decides not to designate their spouse or common-law partner as the successor holder, they may name a beneficiary instead.
Please note that successor holder nomination is not available for TFSA accounts based in QC.