Is Time Machine enough to backup everything before format?

I am thinking to make clean install the Yosemite on my Mac. Before that I want to ensure that everything that is on my Mac will be restored manually by me.

Note: I want to do a Clean Install BUT, I don't want to restore my system as before, I just want to copy some of my necessary files back.

I will do a Time Machine backup now, before the format but I want to know the following for this Time Machine backup:

1) Do I have to reinstall as a new application every application? Or I can copy somehow from my backup the application?

2) Some Applications has really sensitive information on it, for example 1Password with the stored passwords, Google Chrome with the bookmarks etc. Can I retrieve this information (libraries, databases what ever) from this Time Machine Backup?

3) Files stored in my file system e.g Documents, iTunes Music Library, can I retrieve this too?