knowledge topics
TFSA Withdrawals
KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals
- Explain the impact of a withdrawal from a Tax-Free Savings Account on Unused Tax-Free Savings Account Contribution Room.1
- In the current year
- In future years
- Explain the impact of a withdrawal from a Tax-Free-Savings Account.2
- To taxable income
- To the ability to claim income tested government benefits and credits
- Explain when a withdrawal from a Tax-Free Savings Account may be recontributed to a Tax-Free Savings Account.1
- Explain how each of the factors may impact the suitability of withdrawing from a Tax-Free Savings Account, such as:
- Loss of asset growth within Tax-Free Savings Account
- Cash flow needs
- Evaluate how each of the factors may impact the suitability of withdrawing from a Tax-Free Savings Account.
- Calculate the impact on current and projected net worth of a withdrawal from 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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