Personal Finance

TFSA - contribution question

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  • Feb 4th, 2015 7:51 pm
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[OP]
Sr. Member
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Oct 19, 2014
792 posts
96 upvotes
Waterloo, ON

TFSA - contribution question

Hey guys,

I have a question about my TFSA contribution. I became a P.R in Nov 2014, can i still contribute $5500 for 2014 and $5500 for 2015 in my TFSA? So $11'000 in total? Asked the representative at TD when i was opening the account and he wasn't sure either. So i would just like to confirm since i'm interested in buying some stocks and have already used up the 2015 limit. Thanks!
17 replies
Sr. Member
Aug 1, 2005
505 posts
65 upvotes
syedsalmanshah wrote:
Feb 2nd, 2015 12:07 pm
Hey guys,

I have a question about my TFSA contribution. I became a P.R in Nov 2014, can i still contribute $5500 for 2014 and $5500 for 2015 in my TFSA? So $11'000 in total? Asked the representative at TD when i was opening the account and he wasn't sure either. So i would just like to confirm since i'm interested in buying some stocks and have already used up the 2015 limit. Thanks!
TFSA contribution room

Your TFSA contribution room is the maximum amount that you can contribute to your TFSA.

Starting in 2009, TFSA contribution room accumulates every year, if at any time in the calendar year you are 18 years of age or older, have a valid Canadian social insurance number and are a resident of Canada.

The annual TFSA dollar limit for the years 2009, 2010, 2011 and 2012 was $5,000.

The annual TFSA dollar limit for the years 2013 and 2014 is $5,500.

You will accumulate TFSA contribution room for each year even if you do not file an income tax and benefit return or open a TFSA.

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs ... n-eng.html

It should be noted that withdrawals do not regenerate room til the following year.
Sr. Member
Dec 4, 2004
546 posts
255 upvotes
GTA
If you are a resident of Canada and at least 18 years of age at any time during the year, you will accumulate that year's TFSA contribution limit. However, you can only contribute to a TFSA while you are a Canadian resident. You will also need a valid SIN to open a TFSA account.
[OP]
Sr. Member
User avatar
Oct 19, 2014
792 posts
96 upvotes
Waterloo, ON
I have already opened a TFSA account, i just wanted to confirm whether being a resident for only two months in 2014 (Nov, Dec) will allow me to contribute for that year. It seems from the post above that i should be able to.
Deal Addict
Jan 7, 2014
2391 posts
453 upvotes
Winnipeg
syedsalmanshah wrote:
Feb 2nd, 2015 1:19 pm
I have already opened a TFSA account, i just wanted to confirm whether being a resident for only two months in 2014 (Nov, Dec) will allow me to contribute for that year. It seems from the post above that i should be able to.
Yes , you can contribute 5500 for 2014 and 5500 for 2015 right now.
[OP]
Sr. Member
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Oct 19, 2014
792 posts
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Waterloo, ON
Great! Thanks for the help! :)
[OP]
Sr. Member
User avatar
Oct 19, 2014
792 posts
96 upvotes
Waterloo, ON
Guys i have another question regarding TFSA's. Suppose i make a few trades and grow my contribution from $12'000 to $13'000. Can i pull that $1000 out as long as i leave the original contribution amount untouched?

I know that if you take out the original amount you cannot re-contribute it until the following year. However, it's not clear if you're allowed to take out any extra profits generated from trading? Thanks.
Deal Addict
Mar 8, 2013
2317 posts
1074 upvotes
syedsalmanshah wrote:
Feb 4th, 2015 8:58 am
Guys i have another question regarding TFSA's. Suppose i make a few trades and grow my contribution from $12'000 to $13'000. Can i pull that $1000 out as long as i leave the original contribution amount untouched?

I know that if you take out the original amount you cannot re-contribute it until the following year. However, it's not clear if you're allowed to take out any extra profits generated from trading? Thanks.
For the TFSA, don't think of the contribution and investment gains as separate. If you maxed out your contributions as in the example and then withdraw $1000, you cannot contribute that amount until the next calendar year. If you lose all your contribution except for $1000 and withdraw it, same thing.
Jr. Member
Apr 30, 2006
163 posts
20 upvotes
Toronto
syedsalmanshah wrote:
Feb 4th, 2015 8:58 am
Guys i have another question regarding TFSA's. Suppose i make a few trades and grow my contribution from $12'000 to $13'000. Can i pull that $1000 out as long as i leave the original contribution amount untouched?

I know that if you take out the original amount you cannot re-contribute it until the following year. However, it's not clear if you're allowed to take out any extra profits generated from trading? Thanks.
Yes, you are allowed to withdraw all amount including capital gain and interest.
CRA don't care about how much you earn from your TFSA. No tax on those.
They tracks how much you deposit (contribute), how much you withdraw.
Any amount withdraw from this year, will be counted as next year's extra contribution room.

Just think, next year you contribution limit will be 5500 + any amount you withdraw (can be 5,000, 10,000, 20,000, any amount)
[OP]
Sr. Member
User avatar
Oct 19, 2014
792 posts
96 upvotes
Waterloo, ON
Ok so supposing i contribute $11'000 and it grows to $13'000, that means i can withdraw the extra $2000 i earned as profits and keep on trading with the original $11'000? Which means next year i will be able to contribute an extra $2000 on top of my $5500?
Deal Expert
Mar 25, 2005
21277 posts
2103 upvotes
syedsalmanshah wrote:
Feb 4th, 2015 9:53 am
Ok so supposing i contribute $11'000 and it grows to $13'000, that means i can withdraw the extra $2000 i earned as profits and keep on trading with the original $11'000? Which means next year i will be able to contribute an extra $2000 on top of my $5500?
Yes. You can withdraw anything you want.
Newbie
User avatar
Oct 22, 2014
81 posts
6 upvotes
Toronto, ON
syedsalmanshah wrote:
Feb 4th, 2015 9:53 am
Ok so supposing i contribute $11'000 and it grows to $13'000, that means i can withdraw the extra $2000 i earned as profits and keep on trading with the original $11'000? Which means next year i will be able to contribute an extra $2000 on top of my $5500?
This part I believe is incorrect, you can withdraw any amount of money but you can only add in (contribute) whatever your contribution limit happens to be. So next year you can only add another $5500 and not $7500.

EDIT: I think I might be wrong on this one lol. Ignore what I said for the time being haha.
Deal Fanatic
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Feb 19, 2010
5907 posts
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Contrast2 wrote:
Feb 4th, 2015 10:05 am
This part I believe is incorrect, you can withdraw any amount of money but you can only add in (contribute) whatever your contribution limit happens to be. So next year you can only add another $5500 and not $7500.

EDIT: I think I might be wrong on this one lol. Ignore what I said for the time being haha.
Stop trying to help if you don't know the answer. OP is confused enough as it is and was actually right in the post that you responded to.

You should have just deleted your post after you realized your mistake instead of hanging on hoping someone would validate it.
Sr. Member
Dec 22, 2013
930 posts
216 upvotes
EDMONTON
Contrast2 wrote:
Feb 4th, 2015 10:05 am
This part I believe is incorrect, you can withdraw any amount of money but you can only add in (contribute) whatever your contribution limit happens to be. So next year you can only add another $5500 and not $7500.

EDIT: I think I might be wrong on this one lol. Ignore what I said for the time being haha.
Please delete your post now that you know it's wrong.
Sr. Member
Mar 3, 2009
699 posts
191 upvotes
Ottawa, ON
syedsalmanshah wrote:
Feb 4th, 2015 9:53 am
Ok so supposing i contribute $11'000 and it grows to $13'000, that means i can withdraw the extra $2000 i earned as profits and keep on trading with the original $11'000? Which means next year i will be able to contribute an extra $2000 on top of my $5500?
OP, you are 100% correct here. If you withdraw $2000, it gets added to next years contribution next year on top of the $5500.

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