Tax-Free Savings Account (TFSA)
Also known as: TFSA · Tax-Free Savings Account · compte d’épargne libre d’impôt
Product facts
- Country
- Canada
- Provider or product type
- bank
- Local wrapper
- A Canadian account whose contributions, investment choices, and withdrawals follow Canadian law and the account agreement; the Canadian tax-free label does not automatically create a U.S. tax exemption.
- Risk tier
- High
- Last verified
- 2026-08-30
- Reviewer
- Chip Moreno
- U.S. tax focus
- in Canada
Recommended next step
This product is mapped to the foreign accounts consultation. The consultation organizes the facts and records before any preparation scope is written.
Start My Foreign Accounts IntakePossible U.S. reporting channels
These are screening questions, not conclusions. Whether a form applies depends on your specific facts and the current instructions for the filing year.
- FBAR (for the holding account)
- Form 8938
- Form 8621 only if an underlying holding is PFIC stock
- Form 3520 only if the facts support a reportable foreign-trust relationship
Facts that can change the U.S. analysis
These facts matter more than the product name. Identify each one for the relevant year and preserve the document that supports it.
- The account agreement, legal ownership, and trustee or custodial features
- Contributions, distributions, and account balances by year
- Underlying holdings: Canadian mutual funds, ETFs, or other foreign pooled vehicles
- U.S. status and filing-year facts for the account owner
Documents to gather
Start with the governing document, then add the annual statements. Keep the original record together with any translation.
- Account agreement and annual statement
- Contribution, withdrawal, transfer, and closure records
- Underlying fund names, legal issuers, and domiciles
- Year-end and maximum account values in original currency
- Prior U.S. returns and any Forms 8938, 8621, or 3520
Common record gaps and translation needs
- Missing account opening or ownership-change records
- French-language statements without a translated summary
- Unknown cost basis or prior distributions for older accounts
Unresolved questions
These questions stay open until the governing documents, holdings, and filing-year facts are reviewed.
- Is the TFSA an account, a trust-like arrangement, or an ordinary asset for U.S. purposes?
- Do the underlying holdings create a PFIC (Form 8621) question?
- Do contributions or distributions raise Form 3520 or income-reporting questions?
Official sources
Every record is indexed only with at least one directly relevant official local source and one applicable U.S. primary source. Confirm the current instructions and authorities for your filing year.
Record governance
Last verified by Chip Moreno. This record is currently included in the sitemap and internal discovery.