Life annuities may contain both benefits payable during a fixed period regardless of the survival of the measuring life, and benefits that are purely contingent on that life’s continuing survival. The latter are not generally commutable. If so, does such life annuity contract satisfy s. 146.2(2)(e)? CRA responded:
In the absence of such a commutation option, a life annuity contract will not satisfy paragraph 146.2(2)(e) and therefore cannot be registered as a TFSA. In addition, it is not a qualified investment for a trusteed TFSA.