IFIC Mutual Funds Licensing Practice Exam · Question
Which of the following statements is true regarding contributions to a Tax-Free Savings Account (TFSA)?
Unused TFSA contribution room from previous years automatically carries forward and accumulates indefinitely, as long as the individual was a Canadian resident
Start free practice for IFIC Mutual Funds Licensing Practice Exam
355 questions · no signup required · 40 free questions per day
Question: Which of the following statements is true regarding contributions to a Tax-Free Savings Account (TFSA)?
Answer options: ✅ Unused contribution room from previous years carries forward indefinitely.
- Contributions made to a TFSA are tax-deductible.
- Withdrawals from a TFSA in the current year reduce the TFSA room for the current year.
- A TFSA must be closed and re-opened if the account holder moves to another province.
Correct answer: Unused contribution room from previous years carries forward indefinitely.
Explanation: Unused TFSA contribution room from previous years automatically carries forward and accumulates indefinitely, as long as the individual was a Canadian resident and at least 18 years old. This is a fundamental rule of TFSA accounts.
Start free practice for IFIC Mutual Funds Licensing Practice Exam
355 questions · no signup required · 40 free questions per day
More about IFIC Mutual Funds Licensing Practice Exam
More for IFIC Mutual Funds Licensing Practice Exam candidates
Ready to practice?
Free, no signup required. Build a wrong-question list as you go.
Start Free IFIC Mutual Funds Licensing Practice Exam Practice →Related courses
Other Canadian certifications candidates often prepare for alongside this one.