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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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1 vote
1 answer
186 views

Can I transfer stocks from a margin account to a TFSA to avoid capital gains tax?

I am new to trading and ended up opening a margin account rather than a TFSA a few months ago. I know I can sell my stock and then buy it again in the TFSA, but the stock price has gone up and I am ...
1 vote
1 answer
76 views

Moving foreign-currency (USD) securities in kind into a registered account (TFSA) in Canada. How to update contribution room?

I wish to move securities (stocks) in kind from one account of an online brokerage into a registered tax-free savings account (TFSA) at the same brokerage. How should this contribution to the TFSA be ...
1 vote
1 answer
111 views

What account to draw from for a first-time home buyer? (Canada)

Assuming I need 35K for a downpayment and I have 50K in an RRSP 50k in a TFSA and 20k in a non-registered account— which account is it best to draw from? My assumption is that cleaning out the non-...
5 votes
0 answers
97 views

I'm a Canadian citizen and now a US resident. How do I close my Canadian RRSP and TFSA?

I am a Canadian citizen who moved to the US in 2009. I am now a US resident and Canadian non-resident. I still have a Canadian RRSP, TFSA, and bank account. I've filed FBARs since becoming a US ...
2 votes
0 answers
64 views

Transferring USD into a TFSA

I am currently working in the US but maintain my residency in Canada and file with both the IRS and CRA. I have accounts with both Questrade in Canada and Robinhood in the US. I wish to transfer my ...
2 votes
0 answers
33 views

Can I hold US dollars and buy US stocks (with US Dollars) without FX commissions using a Canadian brokerage account?

May be moving to Canada next month, so I had some questions. I would like to transfer my US dollars to a Canadian brokerage account -- from what I've read IB or Questrade are the best options. However,...
1 vote
1 answer
58 views

How does a Canadian sell TFSA assets in a foreign stock exchange?

I'm using TD Waterhouse and bought some stock in my TFSA account. However, the entity was purchased by a UK company. TD Waterhouse doesn't seem to be able to sell stock on the London Stock Exchange ...
2 votes
1 answer
2k views

When would holding U.S. stocks in a non-registered account be better than in a TFSA?

Assume your RRSP is full, and you must buy U.S. stock in TFSA or in an unregistered [aka non-registered] account. The default answer seems to be TFSA! If you have an RRSP, a TFSA and a non-...
3 votes
0 answers
10k views

How much can you have in TFSA without losing any OSAP?

Plz see beneath. Just $3600 for 2019-2020 school year!!?!!? This is too niggling and half-baked! What if student is living away from home? Accomodation and private rent cost way more! What if US or ...
3 votes
1 answer
144 views

Can you legally increase your TFSA contribution room over the government's provided maximum ($63 500 in 2019)?

I saw this idea in Reddit comments by u/differing: I often wish I invested early in the weed stock bubble in my TFSA, not so much for the returns but more to supercharge my TFSA room and transition ...
0 votes
3 answers
5k views

Option spreads in registered accounts [closed]

Are there any option brokers for canadian people that allow you to do credit and debit spreads in their rrsp and Tfsa accounts?
5 votes
1 answer
604 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?
2 votes
1 answer
4k views

I never opened TFSA. Why's my TFSA contribution room $64800.68, not 63500?

Brother Ivan never opened TFSA. Websites beneath say his TFSA contribution room is $63 500, but screenshot from his CRA online account says $64 800.68! Why? Which's right? Know your TFSA ...
3 votes
1 answer
229 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 (...
2 votes
2 answers
201 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 ...
1 vote
0 answers
65 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 ...
-1 votes
1 answer
117 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, ...
8 votes
3 answers
27k 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 ...
1 vote
1 answer
249 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 : ...
1 vote
1 answer
93 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 votes
1 answer
329 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 ...
1 vote
0 answers
424 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 ...
2 votes
2 answers
363 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)...
3 votes
2 answers
789 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 votes
1 answer
223 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 votes
1 answer
373 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. ...
1 vote
2 answers
169 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 ...
1 vote
2 answers
111 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 ...
1 vote
1 answer
383 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 ...
0 votes
1 answer
123 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 votes
1 answer
142 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 ...
2 votes
1 answer
225 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?
1 vote
1 answer
503 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?...
1 vote
1 answer
519 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 ...
1 vote
1 answer
327 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 ...
3 votes
2 answers
407 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 ...
11 votes
2 answers
928 views

TFSA vs. RRSP... Best retirement approach

What's the best retirement strategy? Assuming I have $1000 and room in both my TFSA and RRSP contribution, where should the $1000 go?
0 votes
0 answers
56 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 ...
1 vote
1 answer
429 views

How does the 1% penalty on TFSA transfers work?

The maximum annual contribution limit to a TFSA is $5000 per year. This makes it a good emergency fund vehicle. If I: transfer money out before the new $5000 contribution credit starts for a new ...
0 votes
1 answer
132 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 ...
0 votes
2 answers
156 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 ...
1 vote
1 answer
275 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 ...
4 votes
2 answers
421 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 votes
4 answers
1k 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 ...
4 votes
1 answer
149 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 ...
1 vote
1 answer
242 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 ...
1 vote
1 answer
96 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?
4 votes
1 answer
215 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 ...
6 votes
2 answers
288 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. ...
6 votes
2 answers
459 views

What is a good place to park a Christmas bonus? Pay down the mortgage, TFSA or RRSP?

Many companies in Canada tend to pay out bonuses around Christmas time. If one is fortunate enough to get one this year what is the best strategy for the bonus? TFSA's have a limit of $5000 yearly. ...