TFSA interest & contribution room question
Hi,
the Revenue Canada website wasn't helpful with this one: I have two TFSA accounts. Account A was opened in March and filled with the entire available contribution room. Account B used to have money in it, but was emptied in December 2012, with only the interest earned remaining. (I took all my earlier contributions out.) The interest that stayed behing is a low three digit amount, lets say $195.
January 1st, 2014, I expect to get new contribution room of $5.500.
If I close account B on December 30 and take a $195 cash payout, can I contribute to account A on January 2, 2014, $5.695 or only $5.500?
The examples on the Revenue Canada website do not deal with interested earned.
Thank you.
the Revenue Canada website wasn't helpful with this one: I have two TFSA accounts. Account A was opened in March and filled with the entire available contribution room. Account B used to have money in it, but was emptied in December 2012, with only the interest earned remaining. (I took all my earlier contributions out.) The interest that stayed behing is a low three digit amount, lets say $195.
January 1st, 2014, I expect to get new contribution room of $5.500.
If I close account B on December 30 and take a $195 cash payout, can I contribute to account A on January 2, 2014, $5.695 or only $5.500?
The examples on the Revenue Canada website do not deal with interested earned.
Thank you.