Personal Finance

Question about my TFSA gain/loss in mutual funds

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  • Jan 21st, 2014 12:09 am
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Nov 21, 2006
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Question about my TFSA gain/loss in mutual funds

Hi, I am currently planning to move all my TFSA (3% with PeopleTrust) into INGDirect Streetwise. I have a couple of questions about gain/loss:


Q1: Assuming I have 20k into Streetwise today. By the end of of 2014, my 20k becomes 10k because of a bad year. How much can I contribute again in 2015?

Q2: Assuming I have 20k into Streetwise today. By the end of of 2014, my 20k becomes 30k because of a good year. Does it mean my contribution room will be 35.5k (30k +5.5k) for 2015?
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Member
Mar 31, 2013
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The amount you gain or lose has absolutely no impact on TFSA contribution room whatsoever. If you have maxed out your contributions at this point, the amount you can contribute in 2015 is $5500, plus any amount that you withdrew in 2014.
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Jan 28, 2012
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No, what happens gain or lose within the account doesn't effect your contribution room, unless you withdraw the money

You put 20k in, that's all that matters. Your contribution room for next year is whatever your max is minus the 20k you've used.
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Oct 17, 2005
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fatkinglet wrote:
Jan 20th, 2014 10:25 pm
Hi, I am currently planning to move all my TFSA (3% with PeopleTrust) into INGDirect Streetwise. I have a couple of questions about gain/loss:


Q1: Assuming I have 20k into Streetwise today. By the end of of 2014, my 20k becomes 10k because of a bad year. How much can I contribute again in 2015?

Q2: Assuming I have 20k into Streetwise today. By the end of of 2014, my 20k becomes 30k because of a good year. Does it mean my contribution room will be 35.5k (30k +5.5k) for 2015?
Very simple: Whatever you withdrew in 2014 you can recontribute in 2015 without penalty

Q1: If you sold and withdrew the 10k in 2014 you can recontribute the 10k +5.5k in 2015
Q2: If you sold and withdrew the 30k in 2014 you can recontribute the 30k + 5.5k in 2015

If you don't withdraw any money in 2014 and you've maxed your TFSA, your contribution room will be 5.5k(or whatever the max is).
Sr. Member
Jan 19, 2009
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lets say my TFSA limit is $31000 this year. I put $31000 in and it grows to $50000.00. If I withdraw it before the end of the year in 2015 is my contibution $50000 + new 5.5k or is it back to 30k + new 5.5k
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Mar 25, 2005
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enter wrote:
Jan 20th, 2014 11:02 pm
lets say my TFSA limit is $31000 this year. I put $31000 in and it grows to $50000.00. If I withdraw it before the end of the year in 2015 is my contibution $50000 + new 5.5k or is it back to 30k + new 5.5k
55.5k.
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Mar 25, 2005
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K1Toronto wrote:
Jan 20th, 2014 10:32 pm
The amount you gain or lose has absolutely no impact on TFSA contribution room whatsoever. If you have maxed out your contributions at this point, the amount you can contribute in 2015 is $5500, plus any amount that you withdrew in 2014.
Well thats not entirely true.
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Oct 17, 2005
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enter wrote:
Jan 20th, 2014 11:02 pm
lets say my TFSA limit is $31000 this year. I put $31000 in and it grows to $50000.00. If I withdraw it before the end of the year in 2015 is my contibution $50000 + new 5.5k or is it back to 30k + new 5.5k
$50000 + 5.5k :)
Sr. Member
Jan 19, 2009
893 posts
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Spiderpal93 wrote:
Jan 20th, 2014 11:08 pm
$50000 + 5.5k :)
ahh very cool thanks...does it work in reverse?

lets say I put 31k in today and it drops to 15k and I withdraw everything before end of year....2015 Can I put in 31k + 5.5 new or is it now only 15k +5.5 new?
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Mar 25, 2005
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enter wrote:
Jan 20th, 2014 11:29 pm
ahh very cool thanks...does it work in reverse?

lets say I put 31k in today and it drops to 15k and I withdraw everything before end of year....2015 Can I put in 31k + 5.5 new or is it now only 15k +5.5 new?
Bolded is correct.
Sr. Member
Jan 19, 2009
893 posts
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Kasakato wrote:
Jan 20th, 2014 11:32 pm
Bolded is correct.
cool learned something new today, appreciate your help
Sr. Member
Jan 19, 2009
893 posts
32 upvotes
Spiderpal93 wrote:
Jan 20th, 2014 11:02 pm
Very simple: Whatever you withdrew in 2014 you can recontribute in 2015 without penalty

Q1: If you sold and withdrew the 10k in 2014 you can recontribute the 10k +5.5k in 2015
Q2: If you sold and withdrew the 30k in 2014 you can recontribute the 30k + 5.5k in 2015

If you don't withdraw any money in 2014 and you've maxed your TFSA, your contribution room will be 5.5k(or whatever the max is).
lol silly me, missed this post before posting my questions...pretty much answered it

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