Final answer:
If an individual does not have earned income, they are not eligible to contribute to a TFSA (Tax-Free Savings Account).
Step-by-step explanation:
If an individual does not have earned income, they are not eligible to contribute to a TFSA (Tax-Free Savings Account).
A TFSA is a type of savings account that allows individuals to earn tax-free investment income. In order to contribute to a TFSA, individuals must have earned income, such as income from employment, self-employment, or rental properties. TFSAs are available to all income levels, providing a flexible option for those who may not have a regular income but still wish to save for retirement.
Those without earned income, such as students or individuals who are not currently working, would not be able to contribute to a TFSA. However, they may still be eligible to contribute to other types of savings accounts or investment vehicles specifically designed for non-earning individuals, such as a regular savings account or a Registered Education Savings Plan (RESP).