tax-free savings account

• Gift or loan funds to your spouse or partner so they can make their own contribution. The income earned

on these contributions will not be attributed to you while the funds remain in the plan.

• You can also gift funds to an adult child for TFSA contributions. An individual cannot open a TFSA or

contribute to one before the age of 18. However, when you turn 18, you will be permitted to contribute

the full TFSA dollar limit for that year (currently $5,500 as of 2013).

• To pass your TFSA to your spouse or common-law partner, designate them as the successor holder so

the plan continues to accrue tax free without affecting their contribution room.

• Your annual contribution limit is composed of three components:

−− The annual TFSA dollar limit of $5,500 ($5,000 prior to 2013)

−− Any unused contribution room from a previous year

−− The total amount of withdrawals from your TFSA in the previous year

• If you become a nonresident of Canada:

−− You will not be taxed in Canada on income earned in the TFSA (foreign tax may apply) or on withdrawals

from your plan.

−− No contribution room will accrue for any year throughout which you are a nonresident. In the year of

your emigration or immigration, the annual dollar limit of $5,500 ($5,000 prior to 2013), without

proration, applies.

−− If you re-establish Canadian residence, any withdrawals while you were a nonresident will be added back

to your TFSA contribution room in the following year.

• Consider holding your non-tax-preferred investments — those that give rise to interest and foreign dividends —

in your TFSA.

• You can maintain more than one TFSA, as long as your total annual contributions do not exceed your

contribution limit.

• Neither income earned in the TFSA nor withdrawals from it affect your eligibility for federally income-tested

benefits (i.e., Old Age Security, the Guaranteed Income Supplement) or credits (i.e., GST/HST credit,

age credit and the Canada Child Tax Benefit).