TFSA Contribution Rules: Do Dividends Count?
Question:
Do dividends count as contributions to a Tax-Free Savings Account (TFSA)?
A) Yes, they are counted as contributions.
B) No, dividends are not considered contributions.
C) Only dividends from foreign investments count as contributions.
D) Dividends count as contributions only if reinvested in the TFSA.
Answer:
B) No, dividends are not considered contributions.
Explanation: In a Tax-Free Savings Account (TFSA), dividends received from investments held within the TFSA are not considered contributions. They are simply income generated from the investments and do not affect the contribution limit. Only the amount you deposit into the TFSA counts towards your contribution limit.
- Powers of the Governor in Indian States Executive, Legislative
- Latitude of India's Northern Extremity Key Geographic Details
- Sher Shah's Administrative Reforms Influence Muhammad Tughluq
- Understanding the System of Checks and Balances in India
- Impact of Universal Adult Franchise Empowering Citizens
- Foundational Challenge Federalism Overcoming Non-Democratic
- Understanding Indian Secularism and Its Importance Key Reasons
- Cultural and Educational Rights in the Indian Constitution Articles
- Why Dalit Children Face Discrimination in Schools
- Correct Answer Conservatives vs Radicals on Chan
- Foundational Challenge to Federalism Non-Democratic Regimes
- Reasons for Division and Backwardness in Indian Society
- Why the 1857 Revolt is Called the First War of Independence
- Appendicular Skeleton and Muscle System
- Why Education Was Put Under State Control After Independence
AssignmentHelpAid
0
