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The Great-West Life Assurance Company, London Life Insurance Company and The Canada Life Assurance Company have become one company – The Canada Life Assurance Company. Discover the new Canada Life

The Great-West Life Assurance Company, London Life Insurance Company and The Canada Life Assurance Company have become one company – The Canada Life Assurance Company. Discover the new Canada Life

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Freedom 55 Financial is a division of The Canada Life Assurance Company and the information you requested can be found here.

Can you contribute to your spouse’s TFSA?

Key takeaways

  • You can’t contribute to your spouse’s TFSA.
  • Gifting money to your spouse can allow them to contribute that money to their own TFSA.
  • There are several strategies couples can consider to help save for their future.

Can you contribute to your spouse’s TFSA?

No, you can’t contribute to your spouse’s tax-free savings account (TFSA). Only the named account holder can contribute and withdraw from their TFSA. However, you can gift them money that they may choose to put into it. This is also the case with common-law partners. 

Let’s look at an example. Greg and Elizabeth are married and living in Toronto in 2024. Greg has maxed out his TFSA contribution of $7,000, and so decides to gift his wife $6,000 to add to hers. Elizabeth hasn’t contributed anything to her own TFSA for that calendar year. Since she’ll be contributing $6,000, she’ll still have $1,000 contribution room for the year. If she doesn’t use that contribution room, she’ll be able to roll it over to the following year.

Because Greg gifted this money to his partner Elizabeth and they’re both within their contribution limits, they can both benefit from tax-free growth and tax-free withdrawals.

It’s important to note that this example assumes there is available contribution room for the receiving partner (Elizabeth), and both partners adhere to the annual TFSA contribution limits set by the Canada Revenue Agency.Opens a new website in a new window

Spousal RRSPs can be a good option

While there’s no savings product that lets you directly contribute to your spouse’s TFSA, another strategy that spouses could consider is a spousal RRSP. A spousal registered retirement savings plan (RRSP) lets married and common-law couples:

How can you manage TFSA contributions together as a couple?

Along with gifting money to your spouse that they can use to contribute to their own TFSA, it’s also important to think about other ways to manage TFSA contributions together:

  • Regular contributions: Consistency is key when it comes to investing. Make regular contributions to your TFSAs. This not only takes advantage of dollar-cost averaging but also helps harness the power of compounding over time.
  • Diversification: Spread your investments across different asset classes to mitigate risk. Diversifying within the TFSA can help protect your contributions from the impact of a downturn in a particular market.
  • Invest for growth: Since TFSA withdrawals are tax-free, consider allocating high-growth investments to your TFSAs. This can include stocks, equity-based exchange-traded funds (ETFs), or other growth-oriented assets. The tax-free nature of TFSA withdrawals makes it an ideal vehicle for long-term, high-return investments.
  • Leverage your contribution room: Contribute the maximum allowed amount each year to take full advantage of your TFSA contribution room. The cumulative contribution limit has increased over the years, and staying within these limits could help you maximize the tax benefits. 

What else can couples do to save for their future?

Couples have several options for saving for their future, and the right approach depends on things like your financial goals and risk tolerance:

What's next?

  • Review your investments each year to make sure you’re taking advantage of the various strategies available to you.
  • Speak with an advisor that can assist you with TFSA contributions and other strategies to save for your future.

The information provided is based on current laws, regulations and other rules applicable to Canadian residents. It is accurate to the best of our knowledge as of the date of publication. Rules and their interpretation may change, affecting the accuracy of the information. The information provided is general in nature, and should not be relied upon as a substitute for advice in any specific situation. For specific situations, advice should be obtained from the appropriate legal, accounting, tax or other professional advisors.  

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