Which statements below are correct regarding Tax-Free Savings Account (TFSA)? I) The maximum…

Which statements below are correct regarding Tax-Free Savings Account (TFSA)?

I) The maximum amount of money you can deposit into your TFSA is $6,000 for 2021 and is called your TFSA contribution room.

II) The total amount that you can contribute each year to your TFSA is cumulative, which means that any unused contribution room will carry over from one year to the next.

III) The growth inside your TFSA on your investments and your investment earnings (i.e. interest and/or dividends) does not count as part of your annual contribution; the Canadian government only limits how much money you put in.

IV) If you have not put any money into your TFSA to date, then you are able to contribute $75,500 in 2021, provided you were eligible and at least 18 years old in 2009, the first year the TFSA was available.

V) If you already have a TFSA and have never taken out any money, you can keep adding to your account up until you hit your TFSA contribution room limit.

VI) If you have withdrawn money from your TFSA in the past, you get that room back, in the following year.

VII) At any time over the course of a calendar year, if you contribute more than your allowable TFSA contribution room, you will be “over-contributing” to your TFSA, and subject to a penalty for each month that the excess amount remains in your account.

Points: 1

1. I, II, III, V and VII.

2. II, III, IV, V and VI.

3. I, IV, V, VI and VII.
4. I, III, IV, VI and VII.
5. All the above.