TFSA Limits and Withdrawal Questions

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Mar 25th, 2018 3:05 pm

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Feb 20th, 2018 1:51 pm

paf [OP]: Sr. Member; Dec 27, 2005; 603 posts; 117 upvotes; Toronto, ON

Feb 20th, 2018 1:51 pm

TFSA Limits and Withdrawal Questions

Hello All,

Newbie here looking to invest and Bank with TD

I will be investing close to 20K lump sum in ETFS. and thinking about Saving Monthly in E-Series and Invest Transfer Every quarter to the ETF's

Some questions regarding the above

1. Do I walk in to a TD Branch to open a TDDI TFSA? Or is there another way ( I might invest in RRSPs as well but not at this time . Should I open all at once
2. If I’m opening TD E-series and transferring to ETF’s quarterly , would it effect my TFSA limits? What is the process? If anyone who does this frequency can chip in, I’d appreciate it
3. To Open TD E-series, I go in the branch open a normal Mutual fund and then Convert it?

5 replies

Feb 20th, 2018 9:32 pm

Deepwater: Deal Addict; Feb 1, 2012; 1598 posts; 2373 upvotes; Thunder Bay, ON

Feb 20th, 2018 9:32 pm

I will answer Q3 before Q2 for clarity

1) Any TD Canada Trust branch can open a TDDI account for you. Not sure if you can open registered accounts online w. TD. Up to you if you want to open RRSP at the same time. I have several TDDI accounts with $0 balance including US margin and short accounts.

3) You can buy eSeries in TDDI accounts. If you are opening a TDDI account for ETFs then skip the TD eSeries account and just do it all in TDDI.

2) If you hold eSeries in a TDDI TFSA you can just sell it and buy ETFs with no effect on your TFSA limit since it is all within the same account. If you withdraw funds from a TFSA account you do not get that contribution room back until the next year. One way around that is to ask the receiving FI to initiate a registered transfer, but the FI you are transferring out of may impose a transfer fee. You would need to check their policies and fee schedule. Save yourself the headache and just do it all in TDDI.

I solemnly swear, to never assume I have an inkling at which direction the market will head, and to never make any investments based on a timing strategy.

+1

Feb 21st, 2018 9:03 am

paf [OP]: Sr. Member; Dec 27, 2005; 603 posts; 117 upvotes; Toronto, ON

Feb 21st, 2018 9:03 am

Thank you . will most likely open TDDI

Deepwater wrote: ↑ I will answer Q3 before Q2 for clarity

1) Any TD Canada Trust branch can open a TDDI account for you. Not sure if you can open registered accounts online w. TD. Up to you if you want to open RRSP at the same time. I have several TDDI accounts with $0 balance including US margin and short accounts.

3) You can buy eSeries in TDDI accounts. If you are opening a TDDI account for ETFs then skip the TD eSeries account and just do it all in TDDI.

2) If you hold eSeries in a TDDI TFSA you can just sell it and buy ETFs with no effect on your TFSA limit since it is all within the same account. If you withdraw funds from a TFSA account you do not get that contribution room back until the next year. One way around that is to ask the receiving FI to initiate a registered transfer, but the FI you are transferring out of may impose a transfer fee. You would need to check their policies and fee schedule. Save yourself the headache and just do it all in TDDI.

Mar 18th, 2018 4:24 pm

slinkysicco: Newbie; Mar 17, 2018; 1 posts

Mar 18th, 2018 4:24 pm

I have purchased 40,000 warrants in my TFSA due to expire Feb. 2020 or if it hit's the call price and the company calls them back at the determined price they set. when this time comes I did not consider how I will pay for them in my TFSA as I will be way over my contribution room as I am already maxed out and will require around 70k to convert them to stock.

do I just sell the warrants and take less profit?

I really want to convert them to stocks as I feel the price is going to shoot to the moon.

any advice?

Mar 18th, 2018 7:51 pm

pkrash: Banned; Feb 23, 2009; 1670 posts; 1495 upvotes; Oshawa

Mar 18th, 2018 7:51 pm

Sell enough to exercise the warrants.
The stock most likely won't "shoot to the moon" near the expiry date.
You could just sell the warrants then as they will track with the stock.

Mar 25th, 2018 3:05 pm

lobo: Deal Addict; May 3, 2005; 1737 posts; 477 upvotes; Woodbridge

Mar 25th, 2018 3:05 pm

I noticed something interesting today. In my CRA profile under the TFSA contributions and limits, it shows my 2017 contributions/withdrawals from Tangerine. However, it only shows the lump sum contributions I made from my Scotia One account to my TFSA Tangerine account throughout the year. It doesn't list my monthly automatic contributions into my Tangerine TFSA that come out of my Scotia One account. These contributions go to investing in their Equity Growth fund. Why wouldn't these show up on CRA's website?

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