TFSA Contributions
KNOWLEDGE EXPECTED OF: QAFP® Professionals
Highest Knowledge Level: Evaluation
Knowledge Levels and Associated Verbs
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Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
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Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
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Application
Ability to put information to use / to use knowledge for relevant, practical purposes
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Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
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Define
To state exactly the meaning of
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Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
|
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
|
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
|
Compare
To note the similarities and differences between two or more things
|
Estimate
To determine an approximate value for
|
Calculate
To find the value using mathematics
|
Convert
To change from one form or purpose to another
|
Evaluate
To reach a conclusion or make a through careful study
|
Interpret
To give the meaning of / to construe or understand / to translate orally
|
Hold cursor over or click on each term to read its definition.
- Define limits related to Tax-Free Savings Accounts.
- Tax-Free Savings Account dollar limit1
- Unused Tax-Free Savings Account contribution room2
- Identify factors that impact Tax-Free Savings Account contribution room.3
- Identify the annual Tax-Free Savings Account dollar limit.4
- For past years
- For current year
- Identify the deadline by which contributions can be made to a Tax-Free Savings Account.
- Identify the sources where Tax-Free Savings Account contribution limits may be obtained.5
- Identify unused Tax-Free Savings Account contribution room.
- Explain how contributions made to a Tax-Free Savings Account affect unused Tax-Free Savings Account contribution room.
- Determine how each of these factors may impact the suitability of contributing to a Tax-Free Savings Account:
- Liquidity required
- Propensity to draw on savings
- Impact of future withdrawals on government benefits
- Impact on cash flow
- Potential for matching contributions by employer
- Opportunity cost of contribution
- Evaluate how each of the factors may impact the suitability of contributing to a Tax-Free Savings Account.
- Determine the tax impact of contributions made to a Tax-Free Savings Account.
- Cash
- Deposit in-kind6
- Transfer from Registered Retirement Savings Plan7
- Estimate the tax impact of contributing to a Tax-Free Savings Account.
- Define excess Tax-Free Savings Account amount (over-contributions).8
- Calculate an excess Tax-Free Savings Account amount (over-contributions).
- Explain the penalty tax imposed by the Canada Revenue Agency on excess Tax-Free Savings Account amounts (over-contributions).9
- Calculate the penalty tax that may be imposed by the Canada Revenue Agency based on a Tax-Free Savings Account excess amount (over-contribution).
- Explain the options available when a cumulative excess amount (over-contribution) for a Tax-Free Savings Account exists.10
- Determine how each of these factors may impact the suitability of withdrawing a cumulative excess amount (over-contribution) from a Tax-Free Savings Account:
- Penalty cost of maintaining excess amount in the plan
- Expected rate of return on investments
- Expected time period for Tax-Free Savings Account contribution room to match the value of the excess amount
- Plans for excess amount withdrawn
- Evaluate how each of the factors may impact the suitability of withdrawing a cumulative excess amount (over-contribution) from a Tax-Free Savings Account.
- Define a Tax-Free Savings Account Return, as required by the Canada Revenue Agency.11
- Identify the deadline by which a Tax-Free Savings Account Return is due.12
- Identify the deadline by which tax owing because of over-contributions or contributions made while a non-resident is due.13
REFERENCES
KNOWLEDGE EXPECTED OF: CFP® Professionals
Highest Knowledge Level: Evaluation
Knowledge Levels and Associated Verbs
|
Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
|
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
|
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
|
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
|
||||||
|---|---|---|---|---|---|---|---|---|---|
|
Define
To state exactly the meaning of
|
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
|
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
|
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
|
Compare
To note the similarities and differences between two or more things
|
Estimate
To determine an approximate value for
|
Calculate
To find the value using mathematics
|
Convert
To change from one form or purpose to another
|
Evaluate
To reach a conclusion or make a through careful study
|
Interpret
To give the meaning of / to construe or understand / to translate orally
|
Hold cursor over or click on each term to read its definition.
- Define limits related to Tax-Free Savings Accounts.
- Identify factors that impact Tax-Free Savings Account contribution room.3
- Identify the annual Tax-Free Savings Account dollar limit.4
- For past years
- For current year
- Identify the deadline by which contributions can be made to a Tax-Free Savings Account.
- Identify the sources where Tax-Free Savings Account contribution limits may be obtained.5
- Identify unused Tax-Free Savings Account contribution room.
- Explain how contributions made to a Tax-Free Savings Account affect unused Tax-Free Savings Account contribution room.
- Determine how each of these factors may impact the suitability of contributing to a Tax-Free Savings Account:
- Liquidity required
- Propensity to draw on savings
- Impact of future withdrawals on government benefits
- Impact on cash flow
- Potential for matching contributions by employer
- Opportunity cost of contribution
- Evaluate how each of the factors may impact the suitability of contributing to a Tax-Free Savings Account.
- Determine the tax impact of contributions made to a Tax-Free Savings Account.
- Cash
- Deposit in-kind6
- Transfer from Registered Retirement Savings Plan7
- Estimate the tax impact of contributing to a Tax-Free Savings Account.
- Define excess Tax-Free Savings Account amount (over-contributions).8
- Calculate an excess Tax-Free Savings Account amount (over-contributions).
- Explain the penalty tax imposed by the Canada Revenue Agency on excess Tax-Free Savings Account amounts (over-contributions).9
- Calculate the penalty tax that may be imposed by the Canada Revenue Agency based on a Tax-Free Savings Account excess amount (over-contribution).
- Explain the options available when a cumulative excess amount (over-contribution) for a Tax-Free Savings Account exists.10
- Determine how each of these factors may impact the suitability of withdrawing a cumulative excess amount (over-contribution) from a Tax-Free Savings Account:
- Penalty cost of maintaining excess amount in the plan
- Expected rate of return on investments
- Expected time period for Tax-Free Savings Account contribution room to match the value of the excess amount
- Plans for excess amount withdrawn
- Evaluate how each of the factors may impact the suitability of withdrawing a cumulative excess amount (over-contribution) from a Tax-Free Savings Account.
- Define a Tax-Free Savings Account Return, as required by the Canada Revenue Agency.11
- Identify the deadline by which a Tax-Free Savings Account Return is due.12
- Identify the deadline by which tax owing because of over-contributions or contributions made while a non-resident is due.13
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