Personal Finance

TFSA $5500 question - CRA rules

  • Last Updated:
  • Jan 2nd, 2013 5:01 pm
Tags:
None
Deal Addict
Aug 28, 2010
3521 posts
1215 upvotes
Halifax
radeonboy wrote:
Jan 2nd, 2013 12:41 pm
I found out my mother actually got a penalty last year because she took money out and put it back in the same year, and the bank teller never told her anything or advised her otherwise before she put the money back in the same year.
In the past, CRA has been waiving the penalty if you wrote a letter explaining that it was an honest mistake because you didn't understand the rules. I'm uncertain if they are still doing so, but it may be worthwhile for you mother to give a call to ask.


http://www.taxtips.ca/tfsa/overcontributions.htm
Sr. Member
Aug 28, 2010
885 posts
82 upvotes
Toronto
Off track but how does these rules apply to 90/120/etc day GICs that are "tax free" ex from ING
Deal Addict
User avatar
Dec 28, 2004
1687 posts
130 upvotes
Burlington
porchemasi wrote:
Jan 2nd, 2013 4:33 pm
Off track but how does these rules apply to 90/120/etc day GICs that are "tax free" ex from ING
That answer depends what you have them set to do when they mature.

If you auto-renew them into more TFSA-GICs they stay in your TFSA and should be fine.
If you have them set to go into a TFSA account you are fine.
If you have them set to go into a non-TFSA account at maturity you will not get that room back until Jan 1st of the next year.
Deal Addict
User avatar
Dec 28, 2004
1687 posts
130 upvotes
Burlington
porchemasi wrote:
Jan 2nd, 2013 10:33 am
THANKS! Now where should I deposit $25.5K into a TFSA... currently @ 1.05% with TD.... Peoples Choice has 3% but the site looks sketchy beyond belief!
I've had a People's Trust account for quite a few years now it it was worked great. (It is non-registered, non-TFSA). I have had no problems with them. I took almost all of my money out of it for a down payment and had no issues. They are insured. I hightly recommend People's Trust.

I'm going to switch my money there from Manulife TFSA account which pays 1.x% or something...I just haven't because of laziness.
× < >

Top