Form RC240 Designation of an Exempt Contribution - Tax-Free Savings Account (Tfsa) - Canada

Form RC240 in Canada is used for designating an exempt contribution to a Tax-Free Savings Account (TFSA). It is used to specify that the contribution being made to a TFSA is exempt from taxation.

The individual who makes the tax-free contribution to their Tax-Free Savings Account (TFSA) in Canada would file Form RC240, Designation of an Exempt Contribution.

FAQ

Q: What is Form RC240?
A: Form RC240 is the Designation of an Exempt Contribution for a Tax-Free Savings Account (TFSA) in Canada.

Q: What is a Tax-Free Savings Account (TFSA)?
A: A Tax-Free Savings Account (TFSA) is a type of investment account in Canada that allows individuals to earn tax-free income and savings.

Q: What is the purpose of Form RC240?
A: Form RC240 is used to designate a contribution made to a TFSA as an exempt contribution, meaning it is not subject to tax.

Q: Who needs to fill out Form RC240?
A: Individuals who want to designate a contribution made to their TFSA as an exempt contribution need to fill out Form RC240.

Q: What information is required on Form RC240?
A: Form RC240 requires information such as your name, TFSA account number, financial institution information, and details of the contribution being designated as exempt.

Q: What are the consequences of not filling out Form RC240?
A: If you do not fill out Form RC240 to designate a contribution as exempt, it may be subject to tax.

Q: Are there any fees associated with filing Form RC240?
A: No, there are no fees associated with filing Form RC240.