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Thread: Putting PSA Money into TFSA and then Withdrawing it Immediately

  1. #21
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    Quote Originally Posted by lasimmon View Post
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    I don't think this correct either. You don't get your "growed amount" back. The second year you would have $12K in room.
    Of course you do, but it can also go the other way. You lose money in there and you can’t top it back up to contribute limit

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    Are you sure that's correct? If the very first year TFSA was implemented at $5K, lets say you made $105,000 and withdrew it all the same year. I don't think your next year is 110K contribution limit.

    Regarding losses, that is correct (as in, you snooze you lose):

    Q: What happens if my TFSA investment goes from $36,500 to $0 in one calendar year? Does that mean I get that investment room back in my TFSA? – Tony Zhang, Montreal

    A: I really hope this is a theoretical question. You know, like, what happens if you lick a metal pole in the middle of winter? If not you have my sympathies. That sucks. And I can see why you’d like to have that contribution back, to ease your pain a bit. Unfortunately, that isn’t the way it works, says CRA spokesperson Magali Deussing. “Investment losses within a TFSA are not considered a withdrawal and therefore are not part of a client’s TFSA contribution room. A client is still limited to the maximum contribution room,” and doesn’t gain that room back if losses are incurred.
    https://www.moneysense.ca/columns/as...her-portfolio/
    Last edited by msommers; 04-16-2019 at 12:06 PM.
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  3. #23
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    ^ it is, and i know first hand because i've done it. I know it's hard to believe that the gov't actually gave us a nice perk, but that's how it works.

    Here's one site with an example.
    https://www.moneysense.ca/save/inves...on-limit-rule/

    from the canada gov't website:
    https://www.canada.ca/en/revenue-age...dividuals.html

    Long story short, the way your room is calulcated every year is:
    - new year's TFSA dollar limit (currently $6000)
    - any unused TFSA contribution room from previous years
    - any withdrawals made from the TFSA in the previous year

    The last one is the key point that makes it so your growth creates room.

  4. #24
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    Thanks for confirming. That's un-fucking-real that is allowed but whateves!
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  5. #25
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    Quote Originally Posted by msommers View Post
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    Thanks for confirming. That's un-fucking-real that is allowed but whateves!
    If you don't want to get in shit with CRA, check your myCRA account to confirm your contribution limit for the year.

  6. #26
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    Quote Originally Posted by Xtrema View Post
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    If you don't want to get in shit with CRA, check your myCRA account to confirm your contribution limit for the year.
    The myCRA info for TFSAs are so delayed it's not even funny. It looks like they only report once a year and you won't find out the actual contribution amount until well into the calendar year.

  7. #27
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    You can use last year's amount to calculate your current year.

    As long as you haven't withdrawn anything for the current year, just take your previous year's contribution room minus what you've already contributed.

    I agree that the site could be more up to date but it's simple enough math.

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