LLQP Segregated Funds & Annuities · Component 2.4 · 30% of the exam
A group TFSA:
- AHas separate contribution room from the member's personal TFSA, set by the employer
- Payroll-deducted contributions using personal room; employer contributions are taxable benefits
- CIs locked-in until retirement, since it was established through the employer's plan
- DA registered pension plan, so the employer's contributions create a pension adjustment that reduces RRSP room
Correct answer: B) Payroll-deducted contributions using personal room; employer contributions are taxable benefits
Group TFSAs are convenient saving vehicles with no tax deduction and no locking-in.
Why the other options are wrong
- AA group TFSA uses the member's single personal room.
- CTFSAs are never locked-in.
- DA group TFSA is a savings vehicle, not a pension plan.
Exam tip
Group TFSA: personal room, taxable employer contributions.
Common mistake
Over-contributing across group and personal TFSAs.
What this tests
CISRO competency component 2.4 — Analyze the available products that meet the client's needs — which is weighted at 30% of the Segregated Funds & Annuities module. Written against the published curriculum.
More from component 2
- A segregated fund's 'guaranteed amount' after a partial withdrawal under proportional reduction is:
- A distinctive estate advantage of a segregated fund over a non-registered mutual fund held jointly with a child is:
- Segregated fund guarantees are most valuable relative to their cost when:
- A segregated fund's annual statement reports:
- Compared with a segregated fund, an exchange-traded fund (ETF) generally offers:
- A segregated fund's 'automatic death benefit reset' feature:
Practice the whole Segregated Funds & Annuities module
Timed sets weighted like the exam, and review of every question you miss. Free to start.