TFSA forum

[pvr]

Hi
Starting this thread to post details about TFSA.. Please post the details about TFSA and how to open TFSA account

 

[Amadan123]

There's hardly a better place to start than from the CRA's site! See link below:

http://www.cra-arc.gc.ca/tfsa/

Madan Chartered Accountant team
www.madanca.com

 

[BigBee]

OP.... one key thing to remember is (as told to me by the banker) that once you withdraw money from the TFSA, you cannot add the money back to TFSA in the same financial year, you will have to wait until the next year.

Madan sir... hope the information I shared is correct.

- B

 

[Amadan123]

Hello BigBee,

You are correct.

Withdrawals will be added to your TFSA contribution room at the beginning of the following year.
You can replace the amount of the withdrawal in the same year only if you have available TFSA contribution room

Madan Chartered Accountant team
www.madanca.com

 

[Kysorb]

I get very confused when I look up what is and is not considered a "resident"

My wife moved to Canada and became a PR on November 10th 2014, and does not plan on leaving or becoming a non resident anytime soon.


When legally can we open up a TFSA account for her, and do we get the contribution room for 2014? or does she need to wait for 2015 ?

 

[keesio]

One advice for an US citizens - don't get one.

 

[nekeol]

OP.... one key thing to remember is (as told to me by the banker) that once you withdraw money from the TFSA, you cannot add the money back to TFSA in the same financial year, you will have to wait until the next year.

Madan sir... hope the information I shared is correct.

- B

The Tax-Free Savings Account (TFSA) allows Canadians, age 18 and over, to set money aside tax-free throughout their lifetime. Each calendar year, you can contribute up to the TFSA dollar limit for the year, plus any unused TFSA contribution room from the previous year, and the amount you withdrew the year before.



Note


Qualifying transfers, exempt contributions and specified distributions are not considered in the calculation of contribution room.

The annual TFSA dollar limit for 2014 is $5,500.

All income earned and withdrawals from a TFSA are generally tax-free. Plus, having a TFSA does not impact federal benefits and credits. It's a great way to save for short and long-term goals.

 

[margocan]

Which is better TFSA or RRSP?

 

[keesio]

This is a commonly asked question. The answer is "it depends" unless you are an American. In that case, an RRSP is easier to deal with.

There are a lot of articles on TFSA vs RRSP. One example:
http://www.theglobeandmail.com/globe-investor/personal-finance/retirement-rrsps/tfsa-or-rrsp-it-depends/article16792559/

 

[928029]

I am think to open my first TFSA, how can I compare which bank has better interest rate/investment return? any recommendation?

 

[theguneet]

TFSA is provided to all Canadian residents which aslo includes international students and temporary foreign workers.
It was strated in 2009 with $5000 limit each year. In 2012, the the limit was bumped up at $5500. As of now, anyone who was in Canada in 2009 and has not contributed to TFSA has a limit of $35,500.
Somone earlier mentioned that, he was told by a banker that once you add money you cannot add it again is wrong. You may add money untill you cap your contribution room. Now here is the catch, CRA doesn't recognizes money you take out in that particular year.
For ex: My limit was $31000 and the remaining limit was $5500. So in April of that following year I contributed $5500 and maxed out my limit. Now, in July I took $10,000 out of my TFSA. Although, now I have room to put money in my TFSA, I shall not be able to do so because only money deposited is counted.
And you can always check your limit on CRA's website.

 

[justagirrl]

TFSA is provided to all Canadian residents which aslo includes international students and temporary foreign workers.
It was strated in 2009 with $5000 limit each year. In 2012, the the limit was bumped up at $5500. As of now, anyone who was in Canada in 2009 and has not contributed to TFSA has a limit of $35,500.
Somone earlier mentioned that, he was told by a banker that once you add money you cannot add it again is wrong. You may add money untill you cap your contribution room. Now here is the catch, CRA doesn't recognizes money you take out in that particular year.
For ex: My limit was $31000 and the remaining limit was $5500. So in April of that following year I contributed $5500 and maxed out my limit. Now, in July I took $10,000 out of my TFSA. Although, now I have room to put money in my TFSA, I shall not be able to do so because only money deposited is counted.
And you can always check your limit on CRA's website.

If you took out the money in July, 2014, you can now put the $10,000 back in because it is a new taxation year plus you can also add the extra $5,500 for 2015's limit. You just couldn't put the $10,000 back in during 2014 as you had maxed out in THAT year.

 

[theguneet]

If you took out the money in July, 2014, you can now put the $10,000 back in because it is a new taxation year plus you can also add the extra $5,500 for 2015's limit. You just couldn't put the $10,000 back in during 2014 as you had maxed out in THAT year.

Yes, if you read carefully I mentioned the same using 2014 as an example.
Thanks for completing it.