TFSA Contribution Room question...

[eblend]

Hi Peeps,

So I was an avid user of TFSA before my construction project, and now I want to get back into it.

Before I started building my house, since the TFSA program started, I have deposited the maximum every single year. At that time, it was always into a "savings" type account, so the money always grew at a slow rate, but it always accumulated upwards.

In 2021, I decided to build my house, and took some money out from my TFSA for this reason. At that time, I withdrew what I needed at the moment as cash, and transferred the rest into a different institution and bought some stocks for the sum of $48600. This money has sat there invested and untouched up to this point, so since March 2021. I never made any additional contributions to TFSA account since that time.

Now here is the question. I recently sold my old house, paid off all the debt, and now have a good chunk of money sitting in my normal savings account in a bank. I don't want to invest this money as I will need it to finish all the interior of the house, but at the same time, that could take many months, and I would rather move what I can to TFSA so I don't get taxed too much on all of this.

Looking at the CRA site, it shows that I have $55,697.47 of TFSA room for 2024....how confident can I be in this number? I mean I haven't touched any TFSA for like 3 years now...surely it's a good indicator right, and up to date? I know that technically if I never put money into TFSA I would have $95k in contribution room by now, but CRA says I have $55697.47 as room....and I have $48600 invested in stocks since 2021 (gains and losses don't count if I don't withdraw apparently)......so that means i technically have a total of $104297.47 in my TFSA if I were to put $55697.47 into it right now....which is over $95k....is that ~9k different because of previous year's growths as it sat in my "savings account" type TFSA? I did before take all money out of TFSA before end of year, and recontributed it back on Jan 1st the following year, so I feel like the answer is yes....but just wanted to be sure.

I just want to contribute the max I can, and if CRA says I have 55k...then I should be good right...since I had no other activity for 3 years now...would hate to pay a penalty because I didn't understand things correctly.

[max_boost]

trust cra

[ercchry]

As long as you haven’t done anything in 2024 with TFSA then the MyCRA amount would be correct. Also correct that if you’ve withdrawn in the past then the total contribution amount will not add up to what someone who never used the account’s total would be

[eblend]

Awesome, thanks guys.

[GT.....O?]

I dont know if i would blindly trust the CRA website.

You have to do your own math as well with your contributions as i remember reading CRA website might be a full 1.5 years behind, depending on what time you check on it.
There was a news artical about someone who checked in april? and it hadnt taken into account the previous years contributions yet. They ended up over contributing and the CRA showed no mercy.

i'll see if i can find it again.

[Brent.ff]

CRA in april = / = CRA in october..

[ExtraSlow]

The tax is only on the bit of interest you'll make before you use it. It's a pretty minor thing, and certainly not worth being unsure.

However in your case you seem pretty certain. Giv'er.

[killramos]

Technically. Technically the CRA takes no responsibility for their calc.

BUT if it’s been years and it seems right? I’d say they would have a hard time proving you wrong in an audit.

[max_boost]

screen shot it now
print it out
save it for future proove

[killramos]

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screen shot it now
print it out
save it for future proove

No point. They won’t stand behind their number.

[The_Penguin]

There's a big warning right on the page that lists all of the things that may make their number differ from the actual number.

[killramos]

Basically, as a general statement, the CRA is an organization with 0 accountability.

Rely on them for basically nothing.

[BavarianBeast]

Can rely on them for asking for $1.38 after paying 6 figures in taxes most of the time

[JRSC00LUDE]

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trust cra

Dear God man, never trust the government. Not in any way for anything.

Someone check on Max, he's got a fever!

[ExtraSlow]

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Dear God man, never trust the government. Not in any way for anything.

Someone check on Max, he's got a fever!

[max_boost]

Back the blue
Support our nurses
Support our troops
I love Alberta beef
All lives matter

[skandalouz_08]

You can contribute the whole amount that it says on CRA. It's only the first few months of the year that CRA is normally off as every institution reports at different times based on your contributions.

The fact that you did a withdrawal in the past (principal + interest gained) means that you have increased your contribution limit by the amount you withdrew plus the annual increases the government as implemented every January 1st.

Hope that helps!

[eblend]

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You can contribute the whole amount that it says on CRA. It's only the first few months of the year that CRA is normally off as every institution reports at different times based on your contributions.

The fact that you did a withdrawal in the past (principal + interest gained) means that you have increased your contribution limit by the amount you withdrew plus the annual increases the government as implemented every January 1st.

Hope that helps!

Thanks, that's what I figured as well, just wanted to make sure. Some of the guys up top basically confirmed this as well, but you put it all in once nice sentence

[mr2mike]

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Basically, as a general statement, the CRA is an organization with 0 accountability.
.

Like realtors or home inspectors.
Sensing a trend.