Your investing questions, our clear answers.

Our response:

The Canada Revenue Agency provides information on qualified investments in registered accounts, including Tax-Free Savings Accounts (TFSAs) on its website.

While it may be possible to buy an annuity and hold it in an TFSA, consider that you cannot contribute more than your allowable contribution room – learn how to check contribution room in this previous question. Speak to a financial representative to learn more about holding an annuity in a TFSA and to decide whether an annuity is right for you, and to understand TFSA rules related to contributions and withdrawals when you own an annuity.