Personal Finance

Quick TFSA transfer question

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  • Jun 29th, 2012 6:29 pm
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Member
Mar 9, 2008
496 posts
43 upvotes

Quick TFSA transfer question

Just a quick Q - let's say my TFSA contribution limit is 10,000 and I have an account at X bank that grew to 10,500 in it. If I transfer that entire amount to another bank via a TFSA transfer form, will I have over-contributed by $500? Should I just transfer $10,000 and leave $500 in the existing TFSA account to avoid getting taxed, if the $500 is considered an over-contribution?

Thanks,
2 replies
Deal Fanatic
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Feb 19, 2010
6237 posts
2992 upvotes
No, that would not constitute an over-contribution. You're not contributing anything. You're just transferring.

Just make sure you "transfer" rather than "withdraw". If you do the latter you can't re-deposit it into a TFSA until next year. (This all assumes that you only have two years of contribution room.)

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