Final answer:
A TFSA sold by your CU becomes a registered plan as soon as it is opened and registered with the CRA. The account details are reported to the CRA, and it allows for tax-free growth and contributions without incurring taxes.
Step-by-step explanation:
A Tax-Free Savings Account (TFSA) sold by your Credit Union (CU) becomes a registered plan as soon as it is opened and registered with the Canada Revenue Agency (CRA). When you open a TFSA with your CU, your account details are reported to the CRA, and they track the contributions, withdrawals, and earnings inside your TFSA. Once the account is registered, it qualifies for tax-free growth and allows you to contribute a certain amount each year without incurring taxes.