tag:blogger.com,1999:blog-4402283548766807872.post6947342469529238859..comments2024-03-20T02:26:06.500-04:00Comments on The Blunt Bean Counter: TFSA Confusion – Contribution Limits, Withdrawals and Re-Contributions The Blunt Bean Counterhttp://www.blogger.com/profile/11358868550072516313noreply@blogger.comBlogger26125tag:blogger.com,1999:blog-4402283548766807872.post-90538758547259773112016-11-20T10:17:41.969-05:002016-11-20T10:17:41.969-05:00Thx for your insight what is your blog address so ...Thx for your insight what is your blog address so I can see what other pearls of wisdom u have The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-32053616226126437182016-11-19T10:04:50.675-05:002016-11-19T10:04:50.675-05:00Just for anyone reading this now, this is NOT TRUE...Just for anyone reading this now, this is NOT TRUE. withdrawing gains does not up your contribution room for the following year. You will only get original contribution room back if your taking that out as well. Everyone has the same limit. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-38658533310867142952014-11-06T12:36:43.358-05:002014-11-06T12:36:43.358-05:00$30,500 being the $28k as per question #1 plus 2,5...$30,500 being the $28k as per question #1 plus 2,500The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-69912514336987034072014-11-05T17:59:32.138-05:002014-11-05T17:59:32.138-05:00Great source of information.
It should be noted ...Great source of information. <br /><br />It should be noted that if Dorothy had withdrawn the entire $3,800 in her TFSA in 2013, her January 1, 2014 contribution limit would be $31,800.<br /><br />Considering the above example, what would be the contribution room in 2014 if the portfolio loses money in 2013 to the extent of $500 from her original investment (contribution) of $3000 and she withdraws the balance of $2500 in 2013. Will the contribution room be reduced to $2500 in this loss situation as opposed to an added contribution room of $800 in your example which is the appreciation in portfolio value. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-18310357486238867302014-09-17T08:07:58.396-04:002014-09-17T08:07:58.396-04:00no, your yearly contribution limit increases each ...no, your yearly contribution limit increases each year whether you contribute or not, however, it is reduced by any actual contributions. Her limit only increased because she withdrew money and that amount gets added back the 1st day of the following year. <br /><br />there are no ways to expand your limit, it is only expanded the first day of the next year by your prior year withdrawals.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-21438112169600108382014-09-16T22:53:07.310-04:002014-09-16T22:53:07.310-04:00{ It should be noted that if Dorothy had withdrawn...{ It should be noted that if Dorothy had withdrawn the entire $3,800 in her TFSA in 2013, her January 1, 2014 contribution limit would be $31,800. }<br /><br />In this example, does Dorothy have to contribute her TFSA to the max in order to increase her limit to $31,800? What are ways to expand the contribution limit?<br /><br />Thanks.<br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-68027965257333486312014-06-19T13:37:03.188-04:002014-06-19T13:37:03.188-04:00Hi Anon:
You can replace the $5k your took out on...Hi Anon:<br /><br />You can replace the $5k your took out on Jan 1, 2015. You will also get another $5500 contribution room on Jan 1, 2015 for 2015. So $10,500 if you are including your new 2015 contribution room.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-46403615772926529762014-06-19T08:22:08.032-04:002014-06-19T08:22:08.032-04:00If I add $5,500 to my TFSA in 2014 and then withdr...If I add $5,500 to my TFSA in 2014 and then withdraw $5000 in the same year is my contribution room for 2015 $5500 or $10500?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-7408838622559905032014-03-31T22:39:15.409-04:002014-03-31T22:39:15.409-04:00Hi Donald
No, there is no such thing as a family ...Hi Donald<br /><br />No, there is no such thing as a family plan for TFSAs, unlike RESPsThe Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-75054969292635843082014-03-31T18:35:31.396-04:002014-03-31T18:35:31.396-04:00My wife has not used her TFSA (i.e. $31,000) where...My wife has not used her TFSA (i.e. $31,000) whereas i have put all of mine in a TFSA mainly ETFs portfolio...may I use her TFSA portion in my portfolio?<br /><br />If so, do i put the portfolio under a family title?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-2132233833581090772014-03-05T09:39:09.144-05:002014-03-05T09:39:09.144-05:00Yes, nice growth in your TFSAYes, nice growth in your TFSAThe Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-74232920654336112972014-03-05T06:39:43.229-05:002014-03-05T06:39:43.229-05:00Hi I just wanted to verfiy but it seems any growth...Hi I just wanted to verfiy but it seems any growth within a TFSA, if you withdrew it can be re-contributed the year after your withdrawal. Specifically, say from 2009 to 2014, I had $31000 in total contribution room, and have contributed the maximum amount. <br /><br />But say my portfolio within the account is worth $60000, if I withdrew the full $60000 in later 2014. Will I have $60000+$5500 (assuming the yearly contribution room for 2015 is constant) = $65500 in contribution room in 2015?Anonymoushttps://www.blogger.com/profile/04659748321781652263noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-27603961435764544892013-10-03T07:42:46.625-04:002013-10-03T07:42:46.625-04:00Hey CI
That would be an awesome post topicHey CI<br /><br />That would be an awesome post topicThe Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-74618690337858651412013-10-03T05:46:01.917-04:002013-10-03T05:46:01.917-04:00Not sure if this is what you mean but I tend to be...Not sure if this is what you mean but I tend to believe that it makes sense to also adjust asset allocation to get a reasonable balance of risk based both on the idea of volatility and on economic environments (inflation rising vs falling, GDP growth rising vs falling) - my post here - http://howtoinvestonline.blogspot.co.uk/2013/03/new-improved-model-portfolio-smart-beta.html<br /><br />The tax allocation adjustment simply means that before doing the above "smart beta" balancing I need to recognize that my RRIF's real estate ZRE 10% is only about 7% after-tax (ie losing tax 30%, 0.3 x 10%, on withdrawal). Maybe I should do a post to show how doing both the tax- and risk-weighting together would modify the asset allocations across RRSP/TFSA and regular accounts.CanadianInvestorhttps://www.blogger.com/profile/05645767559302303541noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-50071078892267979162013-09-27T14:45:09.813-04:002013-09-27T14:45:09.813-04:00Thank you Michael and Mark. :)Thank you Michael and Mark. :)Justin Barracosahttps://www.blogger.com/profile/15531806027796188365noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-57988277362174520762013-09-26T21:23:37.963-04:002013-09-26T21:23:37.963-04:00Thank you very much for your prompt reply. The PWC...Thank you very much for your prompt reply. The PWC document is very helpful and highlights the complicated dispositions.<br />when you have the time or the information on the transfer of a TFSA from one institutions to another, I would be grateful to read your reply. As you can see I am fearful of these contracts...<br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-50628680880741691072013-09-26T18:40:45.518-04:002013-09-26T18:40:45.518-04:00Hi Anon
I dont know the answer to your last quest...Hi Anon<br /><br />I dont know the answer to your last question off the top of my head. In respect to your first question, this excellent PWC publication on TFSAs says " Alternatively, the TFSA<br />’s assets can be transferred to the survivor’s TFSA, regardless of whether the survivor has contribution room, if the transfer <br />occurs before the end of the first calendar year after the year of death.<br /><br />THe link is here. <br /><br />http://www.pwc.com/en_CA/ca/tax-memo/publications/pwc-tax-free-savings-accounts-making-the-most-of-them-2013-03-en.pdfThe Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-49489845185722718112013-09-26T17:42:56.920-04:002013-09-26T17:42:56.920-04:00We all know that upon death the TFSA content will ...We all know that upon death the TFSA content will be passed on to either your spouse or who ever the estate distribution decides if not. <br />The question is how to pass it on as extra contribution to their TFSA without triggering CRA penalties. <br />I know it can be done but I would like to know who provides such a clause in their TFSA contract. None of the online brokers permit this neither the bank I asked. <br />Could someone help me?<br />Also, once this question is answered, can you rescind a TFSA contract with one entity and go to another one? (that provides this special exit clause?)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-10022475642786132232013-09-26T16:25:37.578-04:002013-09-26T16:25:37.578-04:00Hi Justin
In regard to the first question, Doroth...Hi Justin<br /><br />In regard to the first question, Dorothy has a $31,800 limit because her TFSA grew in value by $800 which she can re-contribute the year following her withdrawal.<br /><br />Michael, thx for the link. The only thing is, the CRA as I note below does not update for current year info. This is what the CRA says:<br /><br />Your TFSA contribution room information can be found by going to one of the following services:<br />• My Account;<br />• Quick Access; or<br />• Tax Information Phone Service (TIPS).<br />If the information that we have about your TFSA transactions is not complete or if you have made contributions to your TFSA this year, use Form RC343, Worksheet - TFSA contribution room, to calculate your TFSA contribution room for the current year. If we have deemed your unused TFSA contribution room to be a specific amount, do not use this form, call us for more information.<br />You should keep records about your TFSA transactions to ensure that you do not exceed your TFSA contribution room. The CRA will also keep track of your contribution room and determine the balance of room at a particular time for each eligible individual based on information provided by the TFSA issuers.<br /><br /><br /><br /><br />The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-83966082208166855462013-09-26T16:09:13.921-04:002013-09-26T16:09:13.921-04:00Yes you can get access here.
http://www.cra-arc.g...Yes you can get access here.<br /><br />http://www.cra-arc.gc.ca/esrvc-srvce/tx/ndvdls/qckccss/menu-eng.htmlAnonymoushttps://www.blogger.com/profile/16735605918311577651noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-26339306208768118162013-09-26T14:46:44.778-04:002013-09-26T14:46:44.778-04:00I have a question just to be clear for myself:
In ...I have a question just to be clear for myself:<br />In the last scenerio, the lady's contribution limit is noted at 31,800. So her limit is higher than someone who would have invested into their TFSA for the first time in 2014 - their limit would be only $31,000, correct?<br />So everyone's maximum total limit could be changing, and differing from person to person, depending on how well their holdings within the TFSA do, correct? Is there anyway to check on the CRA site what our personal limit at any given time is? Thank you.Justin Barracosahttps://www.blogger.com/profile/15531806027796188365noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-57487432238304101182013-09-24T18:24:46.611-04:002013-09-24T18:24:46.611-04:00You put a dollar in and you take a dollar out. Tha...<br />You put a dollar in and you take a dollar out. That's what it's all about!<br />LifeInsuranceCanada.com Inc.http://www.lifeinsurancecanada.comnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-15101119464865832062013-09-24T16:08:39.739-04:002013-09-24T16:08:39.739-04:00Hey CI
Interesting point and great post you refer...Hey CI<br /><br />Interesting point and great post you reference. I have to wrap my head around your point. I am not sure your true equity "risk" may not become overweighted even though your after tax allocation is in line. Is risk allocation and asset allocation the same thing?The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-9423915125468850112013-09-24T15:00:32.506-04:002013-09-24T15:00:32.506-04:00Another key factor to consider is that you own 100...Another key factor to consider is that you own 100% of what is in a TFSA or taxable account whereas the government owns a good chunk of registered retirement accounts. Your asset allocation may not be what you think, especially since fixed income / bonds tend to be kept in the RRSP. I took a stab at showing how to adjust for tax here - http://howtoinvestonline.blogspot.ca/2012/11/tax-adjusted-asset-allocation.htmlCanadianInvestorhttps://www.blogger.com/profile/05645767559302303541noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-51802369475632171362013-09-23T09:11:37.963-04:002013-09-23T09:11:37.963-04:00Hi Bet
In making my point about allocation, I did...Hi Bet<br /><br />In making my point about allocation, I did not give much thought to your point. But valid. I have changed my blog in that respect. Thx.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.com