Tax Free Savings Account - Top it Up Today!
Date Posted: Apr 10, 2015

Tax Free Savings Account (TFSA) - Key Information

  • $5,000 annual maximum contribution for each year 2009 thru 2012 ($20,000 accumulated) $5,500 annual maximum contribution for 2013 – 2015 ($16,500 accumulated)

  • Contribution room accumulates each year ($36,500 if you have never contributed to date)

  • Unused contribution room can be used in future years

  • Contributions are not tax deductible
  • Interest earned is Tax Free
  • Over contribution is subject to a penalty tax of 1% per month until withdrawn. NOTE: It is very important to ensure your contribution limit is not exceeded

  • Holder can withdraw funds at any time, however, a withdrawal request may be impacted by the investment type (ex: 3 year fixed non-redeemable term deposit)

  • Withdrawal not subject to withholding tax and not reported as taxable income

  • Withdrawals increase contribution room for the year following the year of withdrawal

  • Withdrawals will not impact eligibility for federal income tested benefits and credits (ex: OAS, GIS, Age Credit, GST, EI, child-tax benefit, working income tax benefit)

Example

2009 contribution maximum allowed:   $5,000

Holder contributed for 2009:                  $2,000

2010 contribution room:                         $5,000 (new contribution room)+$3,000 (2009 unused contribution room)=$8,000 (Available contribution room for 2010)

2010 withdrawal:                                   $1,000.  This amount is not added to your unused contribution limit until 2011.  Therefore if you contribute $8,000 total                                                                                                    in 2010, you would not be subject to an over contribution penalty, but if you contribute more than $8,000 you would be                                                                                                                subject to the over contribution penalty

2011 contribution room:                         $5,000 (new contribution room)+8,000 (if allowed $8,000 not contributed)+1,000 (2010 withdrawal)=$14,000 unused                                                                                                       contribution limit

 

Contact our Specialists

1-866-612-2300 Richard Lang (ext. 224) - Janet Breti (ext. 288) - Josh Jordan 746-7643 or info@raymorecu.com

 

BE PREPARED… before contacting CRA

To confirm your contribution room with CRA you will require your Social Insurance Number, Date of Birth, and Line 150 (total Income) on your most current filed and processed income tax return.

Verify your TFSA Limits - CRA Contact Options

  • Visit the CRA website: http://www.cra-arc.gc.ca/esrvc-srvce/tx/ndvdls/myccnt/menu-eng.html  Click CRA Register. Follow each step. Your personal information will be required

  • 1-800-267-6999 Tax Information Phone Service (TIPS), available 24 hours a day, 7 days a week. This phone call will only take about 5 minutes

  • IMPORTANT: The contribution room that CRA provides will be for January 1st of the current year and includes the contribution room for the year going forward.

  • Mail a request to Tax Centres - addresses available online http://www.cra-arc.gc.ca/cntct/t1ddr-eng.html

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