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so i finally got my tfsa refund from taxes i was required to pay. now the notice i got says i have 5,958.74 contribution room for 2011. i understand how they came up wuith it because it is 5000 for this year and the 958 whatever i did not use that year.
Does this mean that that is the maximum i can put in without being penalized? or can i add back the amounts for previous years as well now?do i have to start all over again and my limit all year is that much?? sorry if that sounds confusing.
Each year your contribution limit is reset to $5000. If for example you withdrawal $4000 the previous year, you now have $9000 the following year. To verify what your new limit is for the year, please wait for the personal income tax notice after you do your taxes. Clicking on the link below you can login and check your current contribution limit.
http://www.cra-arc.gc.ca/tx/ndvdls/t...trbtn-eng.html
the limit for each year is $5000. if you didn't use or withdrawal from the previous years, the amount can be carried over. double check with your bank....
To make things clear:Quote:
Originally Posted by kris10
1. Your 2011 contribution room seems to be: $5958.74
(a). $5000 new room for 2011, &
(b). $958.74 the amount withdrawn in previous years).
2. If you have done any other withdrawals from 1st Jan 2010 to 31st Dec 2010 (apart from this 958.74), than you can add that too into the amount ($5958.74 + ????). If you have not done any other withdrawal than your contribution room is $5958.74..
This is the maximum, you can contribute without triggering penalty.
My personal suggestion: it all depends on where you are investing the amount. If its a GIC, or a fixed income product, than the benefits are not that significant, than, its always better to stay below the maximum limit.
$5958.74.... now max that baby out. Have your financial adviser set up tax free investment account. All the profits you make in it are tax free. I opened my TFIA when the accounts were first made available, and then bought up 216 shares of BMO stock at $23/share during the recession. Today it's at $61/share :)
Great strategy on the TFSA and stock purchase. Who says you can't make money in a recession?Quote:
Originally Posted by mulock
Correct, only if you can handle the volatility. There is a lot of luck in the BMO purchase. Because TFSA was launched on 1st Jan 2009, by then the markets had already collapsed, so anything you buy, did well..
Imagine, if TFSA was launched on 1st Jan 2008, than a lot of those purchase would have been still under-water.
Its not in a recession, (basically) it was coming out of a recession. The trick, is to get out with the gains, before the next recession hits.
When there is extreme pessimism, thats the time of maximum opportunity; & When there is extreme optimism, its exactly the reverse. So prepare accordingly..
Since long we have been recommending precious metals (in a TFSA): here are couple of examples since TFSA started:
SLW (Silver Wheaton; Silver Royalty company) it was $8.01 on 2nd Jan 2009 & today its $36.22;
TCK (Teck Resources; Canadian largest copper miner) was $5.74 on the same day & today its $56.69.
There are several such info. In comparison, those who put their money in a high interest saving account, barely made anything & cost of living/inflation has already eaten up more than the gains..
Inflation is catching up (this genie is out of the bottle), it will make money worth less & all prices essentially everything is heading higher & only salaries/jobs are heading lower.
Check out this on inflation: http://ashedfc.blogspot.com/2011/02/...ank-theft.html
Federal Govt. should change the name from TFSA (Tax Free Savings Account) to TFIA (Tax Free Investment Account). Many canadians still believe, TFSA means a savings account, where only high interest (or whatever interest) savings are done.
This is simply not true, so, I would suggest Ministry of finance, to reconsider changing the name.. to TFIA.