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Questions tagged [tfsa]

To be used for questions related to TFSA [Tax Free Savings Account] as applicable in Canada.

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122 views

TFSA and have $1M dollar after 40 years at 5.5% interest with $500 year bump 2% annual inflation rate : Is it an efficient way to be a millionaire?

Is it true that if I fix 5500 dollars at a TFSA (Tax-Free Savings Account) at 5.5% interest and 500 dollars yearly bump then after 40 years someone will retire with a million dollar? Is it an ...
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0answers
34 views

What type of trading is taxable in a TFSA investment acount?

I always assumed that capital gains in TFSA is non-taxable until I read that people who use TFSA investment account for day trading are starting to being audited by the CRA. So, what types of ...
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0answers
38 views

Does employer matching contributions in a TFSA count towards the annual limit?

Does my employer matching my contribution to a TFSA count towards my annual TFSA contribution limit?
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1answer
102 views

Tax free savings account

I know that this type of account does not exist in the US. For those who know, is there absolutely no tax deducted from my earnings when I invest in stocks? For example, if I turn 10000 to 1 million, ...
3
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1answer
86 views

Deposit shares in TFSA before capital gain that exceeds contribution limit

I find myself in an interesting position right now. I bought into a private placement and my escrow will be ending in a couple weeks. The kicker is that, if I were to deposit the shares into my TFSA (...
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1answer
156 views

In Canada, is it legal to transfer Adsense earnings to free tax account?

As long as you respect the free tax account limit, is it legal and correct to transfer Adsense earnings to free tax account in Canada? My objective is to not pay taxes on Adsense earnings. Note : ...
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1answer
66 views

TFSA withdrawal

If I make a TFSA withdrawal and wish to re-invest the following year, do I have to re-invest with the same institution, or can I change to one offering a better rate? If I have already made this ...
2
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1answer
180 views

Asset Allocation between TFSA vs RRSP

I have 60K in my TFSA and 15K in my RRSP. Both accounts are maxed out. I want to go with the basic balanced couch potato portfolio: XAW: 40%, VCN: 20%, ZAG: 40%. I've heard that putting stocks in ...
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0answers
318 views

Is it worth contributing to a Canadian TFSA from the USA?

I am a Canadian citizen studying for a PhD in the USA. From the CRA's point of view, I'm a Canadian resident; from the IRS's point of view, I'm a non-resident alien. My investment goal is long-term ...
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2answers
311 views

How do I transfer money from one TFSA to another? [CAN]

I have had my investments managed in a TFSA by fundex for many years. Now I want to take things into my own hands and manage my own investments. I am trying to transfer my funds out of one TFSA and ...
2
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2answers
256 views

Long term investing alternative to mutual funds

Background I'm trying to figure out what is the best way to supplement my RRSP for retirement. In Canada, I can contribute roughly 18% of my annual income (up to an annual maximum of about $26,230.00)...
2
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1answer
174 views

Reasons to add an REIT to portfolio

I am wondering if someone can point out the advantages/disadvantages of adding an REIT to a basic ETF portfolio that will be cashed out in 3-5 years(or the next good bull mrkt) as down payment for a ...
2
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1answer
201 views

Switching funds within the same TFSA- how is contribution room impacted?

I have a TFSA mutual fund account with TD Canada Trust and am looking to do some re-balancing of funds within this account. I am aware that I can use the "Switch funds" feature to accomplish this. ...
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2answers
139 views

Are GICs a reasonable investment within a TFSA?

I have a TFSA with ~$15k in it. ~$5k is invested into a 0.9% GIC, for 12-months, but I've been told by nearly everyone I've mentioned that rate to that I was burned, and that my money could have been ...
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1answer
269 views

Taxes on foreign and local dividends held in a TFSA

As far as I read in many articles, all earnings (capital gains and dividends) from Canadian stocks will be always tax-free. Right? In contrast, holding U.S. or any foreign stock that yields dividends ...
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1answer
91 views

Paying taxes on an inherited Canadian TFSA? (Successor holder case)

I read this interesting article about Questions about TFSA and I contrasted the information with CRA's website about successor holder. As far as I understood, when the original holder's TFSA pass ...
2
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1answer
113 views

Possibility to buy index funds and individual funds in a Canadian TFSA

Looking at the online info of my Bank I saw that the eligible investments that I can do in a TFSA is mutual funds, GICs and saving deposits. Is there a way to buy individual stocks like Apple, Google ...
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2answers
90 views

What are the consequences of transferring US equities from TFSA to RRSP?

I plan on transferring stocks owned in my TFSA to my RRSP as part of my 2015 RRSP contributions. However, I do own some US stocks in my TFSA. When I transfer those stocks, are there any tax ...
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1answer
189 views

Can a dividend reinvestment plan (DRIP) and share purchase plan (SPP) be used with a TFSA?

Can I put Sun Life (SLF) shares into a dividend reinvestment plan (DRIP) and share purchase plan (SPP) plan, and then put into a TFSA investment account for a family member, 5 to 10 year term?
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1answer
323 views

How does TFSA contribution room carryover work, e.g. unused amounts and withdrawals?

Is the TFSA contribution limit per year $5000/person? How are unused contributions carried over? If last year I contributed only $3000, then this year, would I have $7000 contribution room available?...
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1answer
362 views

Do I pay withholding tax on a US company trading on TSE

I am talking about Cenovus energy:TSE:CVE It trades on both NYSE and TSE. If I buy it on TSE and pay in CAD, in my TFSA, do I still pay the 15% withholding tax, that cannot even be recovered using ...
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1answer
171 views

Why Does My Tax Free Savings Account Say I Have 0 Contribution Room as of 2015?

I am living in Canada, and I recently went to http://www.cra-arc.gc.ca/esrvc-srvce/tx/ndvdls/myccnt/menu-eng.html and tried to check my TFSA contribution room for this year. I turned 18 on February ...
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0answers
49 views

TFSA withdrawl to make room for options deposit

If I stand to make $30,000 in capital gains on stock options that I hope to cash out in 2 years time, is it better to make room in my TFSA account by withdrawing TFSA funds the year before to make ...
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2answers
1k views

Option spreads in registered accounts

Are there any option brokers for canadian people that allow you to do credit and debit spreads in their rrsp and Tfsa accounts?
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1answer
110 views

Is the interest earned on a TFSA account tax deductible if it is moved to an RRSP

Let us say at the beginning of the year I put 5000 dollars in a TFSA account. I invest that money, get 5% and in December, I move the principal + interest = 5250 $ in my RRSP. Now, RRSP contributions ...
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2answers
97 views

Different avenues of tangible returns from index funds and bond funds

I am a beginner investor and I've been out of school at this point having saved enough to seriously look at where I am investing my money. I have decided to start off with a portfolio that is ...
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1answer
117 views

Are retirement contributions for temporary workers in Canada mobile?

I am an American citizen about to start a temporary three-year position in Canada. It's possible but unlikely that I will settle in Canada permanently. Will I be required to contribute to a ...
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2answers
340 views

Investing for Dividend Income with Canadian TFSA

I have a TFSA that I tend to max out every year. I would like to invest this money into stocks that pay me out dividends on a regular basis. I asked a previous question about the tax implications in ...
4
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1answer
122 views

Can you point me to the correct US tax forms if I have a Canadian TFSA mutual fund?

I am a Canadian citizen and American permanent resident who invested in a TFSA mutual fund with a Canadian bank. Im looking to be pointed in the right direction for filing American taxes on these ...
5
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4answers
986 views

Should I max out my TFSA contribution before any other investments?

I'm still relatively young (I just turned 30), and no debt but mortgage. I'm kind of late to the retirement savings game and still have $15,000+ of contribution room for my TFSA as of this year. As a ...
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1answer
86 views

Is there a risk I may, eventually, be required to pay taxes on the investment returns from my TFSA?

My TFSA contributions grow, without my having to pay taxes on the growth they experience. Is this benefit likely to continue indefinitely, or will I at some point be required to pay these taxes?
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1answer
220 views

How can a bank offer a higher interest rate for a savings account than for a GIC?

At this link on rates offered by ICICI, the TFSA savings account rate currently being offered is 1.8% but the GIC rate being offered is 1.75%. But why would anyone put money in a GIC and lock it up ...
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1answer
174 views

Tax free savings or mutual funds (Canada)

I have an RRSP that over the last two years has held at ~10.3% and I have an emergency fund of $10,000 that is just sitting in my savings account. Would it be prudent to put that whole $10,000 into a ...
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2answers
265 views

Shelter personal corporation dividends in a TFSA?

As I understand it, it is possible for people who own their own corporation/small business to pay themselves through dividends. Since they own 100% share in the business they receive 100% dividends. ...
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1answer
9k views

What happens to dividends on stock held in TFSA or RRSP account?

What happens when dividends are paid out on stock held in TFSA or RRSP accounts? Do the payouts get put back into those same registered accounts? Are they considered 'contributions' into those ...
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2answers
2k views

TD Waterhouse and USD/CAD conversion in TFSA account, or US money market fund?

I spoke to TD Waterhouse about conversion rates from CAD to USD in my TFSA account. They suggested if I want to avoid going back and forth with currency conversion, that they can put it into a USD ...
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1answer
157 views

TFSA over-contributions: How would the penalty apply in this scenario?

If my TFSA account is maxed and I want to transfer 5000 shares at $1.00 on August 2nd, 2011, and I was to sell the shares at $2.00 on January 3rd, 2012, would I have to pay tax on the gain plus 1% per ...
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1answer
2k views

Can capital gains from employee stock options be transfered to a TFSA to avoid taxes?

In a scenario where, for example: An employee exercised a "same-day-buy-and-sell" operation on his employee stock options. He ends up making a profit / gain of $10K. He already has a yearly salary of ...
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3answers
19k views

Is there a penalty if I withdraw from TFSA?

I have a TFSA account to which I have contributed 5000 yearly since past 3 years. Now in emergency, I need to withdraw some money. What are the penalties (if any) I am looking at? Thank you EDIT: My ...
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1answer
2k views

What is a “Registered” plan, as in, what does “registered” specifically mean, in the context of an RRSP?

What is the meaning of the "Registered" part in "Registered Retirement Savings Plan"? What is an example of an unregistered savings plan?
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2answers
299 views

What happens if TFSA contribution limits are exceeded?

When CRA says the annual limit for a TFSA is $5000, what does it mean? What happens if I put in $6000. The gains will be taxed? How exactly? Divide the gains by 1/6, then tax the 1/6 part???
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2answers
859 views

Does the interest rate on a savings account always fluctuate? What about for a TFSA?

When we say 'Savings Account', does it automatically mean that the interest rate can go up and down? So by that definition, the interest rate on TFSA can go up and down any time?
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1answer
337 views

Compounding difference between these TFSA Savings Account & TFSA GIC interest rates?

From the brochure of my bank, here is an excerpt: Interest on the TFSA Savings Account is calculated daily and paid monthly. Interest on TFSA GICs is compounded annually and paid at the end of ...
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2answers
872 views

What is the real tax benefit of Tax Free Savings Accounts (TFSA) vs normal (unregistered) savings or investment accounts?

From an investor's point of view, are investment options that are allowed to grow 'tax free' a beneficial choice? The investor is anyway going to pay tax once he withdraws the money*. What I am ...
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3answers
377 views

How can I determine which is right for me, RRSP or TFSA, if any at all?

I'm 22 years old, and currently dumping all my money into my general savings account. I'd like to take this further but I'm not sure where to go with this. What type of savings account should I get ...
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1answer
646 views

Questrade: Tax Free Trading Account. Why don't other brokers in Canada have these?

I noticed Questrade has a Tax Free Trading Account. Is this too good to be true? Why do other brokers not have a "Tax Free Trading Account" where your gains are not taxed and where you can contribute ...
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3answers
2k views

Where is a good place to open a Tax Free Savings Account (TFSA)?

I'm looking to open a Tax Free Savings Account. Where is a good place to open one? Which kind of Tax Free Savings Account would you recommend?
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1answer
2k views

I have not yet invested into a TFSA - how much can I invest in 2011?

I have not yet created a TFSA, nor invested anything in it. I am looking to put some money in in 2011, what will my cap be?
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3answers
5k views

Is a Canadian TFSA similar to an American Roth IRA?

Canada never used to have a "pay tax now, but don't pay tax later" investment option, until 2009 when the TFSA (Tax-Free Savings Account) was created. Is this fundamentally the same as a US Roth IRA? ...
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2answers
275 views

TFSA Withdrawals

If my TFSA is worth $25000 and I only put in for 2 years ($10000), can I withdraw the $25000 and put it back in later, or am I only allowed to put the original $10000 back in (assuming this withdrawal ...