TFSA eligible amount

[ibanking90]

Dear All,

I made my soft landing in Canada back in Nov 2017, but I only permanently moved to Canada in Jan 2019. I'm opening a TFSA account now with RBC and would like to ask how do I calculate the maximum allowable contribution to my TFSA. Am I only eligible for 2019 or can I count the allowable contribution for 2017 and 2018 as well?

Thanks and regards,

 

[mad_hatter]

You can only count 2019 and the TFSA limit for 2019 is $6000.

 

[Investocrat]

You can open a TFSA from the time you received your SIN number (I assume in 2017). However, it is advisable to start from 2019 when you became a "resident" because as a non-resident (you in 2017 and 2018), your TFSA account is subject to a 1% tax per month and this is not worth it. That being said, CRA may have given you the contribution room for the previous years if you filed a tax return.

For certainty on your contribution room to date, check your CRA MyAccount or the Notice of Assessment you receive when you file your next taxes.

For more information:

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/tax-free-savings-account/who-open-a-tfsa.html

https://www.savvynewcanadians.com/tfsa-contribution-limit-2019/

Dear All,

I made my soft landing in Canada back in Nov 2017, but I only permanently moved to Canada in Jan 2019. I'm opening a TFSA account now with RBC and would like to ask how do I calculate the maximum allowable contribution to my TFSA. Am I only eligible for 2019 or can I count the allowable contribution for 2017 and 2018 as well?

Thanks and regards,

 

[expert_law]

Hello,
Can anyone help me with this - I received an educational letter from CRA on TFSA over-contribution. As per the letter, I have exceeded the TFSA contribution for 2022 by $9,000. So far, they are not charging penalty for this over-contribution. When I checked my CRA account it showed me that my contribution as of 1 Jan 2023 is only $2,500 (I guess this is due to the fact that a contribution room of $6,500 was added on 1st Jan 2023).

In this scenario, I have 2 questions:
a) What amount do I need to take out from my TFSA ($9,000 or $2,500) ?
b) How much time I have to withdraw the money (received the letter from CRA on 18th June 2023)? The money in TFSA is in form of Non-redeemable GIC and it is set to mature end of July'2023.

Thank you

 

[Canada2020eh]

Hello,
Can anyone help me with this - I received an educational letter from CRA on TFSA over-contribution. As per the letter, I have exceeded the TFSA contribution for 2022 by $9,000. So far, they are not charging penalty for this over-contribution. When I checked my CRA account it showed me that my contribution as of 1 Jan 2023 is only $2,500 (I guess this is due to the fact that a contribution room of $6,500 was added on 1st Jan 2023).

In this scenario, I have 2 questions:
a) What amount do I need to take out from my TFSA ($9,000 or $2,500) ?
b) How much time I have to withdraw the money (received the letter from CRA on 18th June 2023)? The money in TFSA is in form of Non-redeemable GIC and it is set to mature end of July'2023.

Thank you

$2500. When you withdraw it is up to you but you are being charged 1% PER MONTH on the excess contributions, 1% per month on the $9k last year and 1% on the $2500 as of Jan 2023 which will continue to accrue until withdrawn.

https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4466/tax-free-savings-account-tfsa-guide-individuals.html#P44_1127

You posted this question many times on many threads, please refrain from doing that in the future.