Taxation Rules & Investment Holdings

A Tax-Free Savings Account (TFSA) offers you the flexibility and convenience of investing in your future while accumulating earnings, tax-free, as you work towards your short-term and long-term financial goals.

Do I Have to Pay Taxes on my TFSA Income?

No. You don’t have to pay taxes on the investment income you earn in a TFSA or on the amounts you withdraw. This can help you build your savings faster.

Do TFSAs Impact My Eligibility for Federal Income-Tested Benefits?

No. TFSA contributions and withdrawals do not impact any federal government assistance programs such as the Canada Child Benefit program or Guaranteed Income Supplement. This means that those who benefit from these programs can continue to use the TFSA to generate tax-free income without affecting their support under these programs. 

What Kind of Investments Can I Hold in My TFSA?

You can hold many of the same investments you hold in your RRSP in your TFSA1, including:

  • Mutual funds
  • GICs 
  • Stocks
  • Bonds
  • Exchange Traded Funds (ETFs)

What Happens to My TFSA Assets in The Event of a Marriage Breakdown?

In the event of a breakdown of a marriage or common-law partnership, a transfer can be made from one individual's TFSA to another individual's TFSA without implication for either person's contribution room. The transfer is made by the issuer of the TFSA. 

More information on the conditions governing individuals in this scenario can be found on the Government of Canada website.

What Happens To My TFSA If I Die?

If the account holder of a TFSA dies, there are two typical scenarios:

  1. A designated successor holder (spouse or common-law partner) takes over as the holder of the TFSA. 
  2. A designated beneficiary, which can be your estate, receives the distribution from the account.

Your TFSA will continue to grow tax-free if given to a successor holder. Often a successor holder can consolidate the TFSA with their own TFSA for simplicity of management. Or the TFSA can be maintained separately.

You can designate a successor holder and/or a beneficiary when you set up your TFSA at TD. 

How Do I Open a TFSA at TD?

For more information on TFSAs and how you can reach your savings goals, you can book an appointment and visit a branch at a time that’s convenient for you.

Already have an EasyWeb account? Apply online and fill out an online application if you already have a TD Canada Trust chequing or savings account.



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1Subject to any restrictions on the investments chosen.

The above information about the Tax-Free Savings Account is based on information currently available from the Canadian government. To learn more or to check for updates, visit the TFSA information page on the Government of Canada website.

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