knowledge topics
TFSA Transfers
KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals
- Identify potential reasons why an individual may choose to transfer capital property from one Tax-Free Savings Account to another Tax-Free Savings Account.
- Breakdown of the holder’s relationship
- Death of the holder
- Death of the holder’s current (or former) spouse
- Voluntary choice by the holder to transfer
- Explain the Canada Revenue Agency’s requirements related to tax-deferred transfers of capital property between Tax-Free Savings Accounts upon the breakdown of a relationship between spouses.1
- Define a qualifying transfer between Tax-Free Savings Accounts.
- Explain the impact of a non-qualifying transfer between Tax-Free Savings Accounts.2
- On the TFSA contribution room for the transferor
- On the TFSA contribution room for the transferee
- Tax (penalty), if any
- Estimate the tax impact of transferring capital property into a Tax-Free Savings Account.
- Explain how each of the factors may impact the suitability of transferring capital property into a Tax-Free Savings Account, such as:
- Withdrawal options
- Tax impact
- Evaluate how each of the factors may impact the suitability of transferring capital property into a Tax-Free Savings Account.
- Explain how each of the factors may impact the suitability of transferring capital property out of a Tax-Free Savings Account, such as:
- Cash flow needs
- Withdrawal options
- Evaluate how each of the factors may impact the suitability of transferring capital property out of a Tax-Free Savings Account.
Glossary of Verbs (mouse over to see definition)
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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
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Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
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Compare
To note the similarities and differences between two or more things
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Estimate
To determine an approximate value for
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Calculate
To find the value using mathematics
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Convert
To change from one form or purpose to another
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Evaluate
To reach a conclusion or make a judgement through careful study
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Interpret
To give the meaning of / to construe or understand / to translate orally
Read more about the Taxonomy used in the FP-BoK
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