I over-contributed $1,024.61 on my TFSA, but I'm not planning to withdraw the excess as I'm hoping we will get a bullish Nov-Dec markets. The 1% penalty will cost me $20.5 for 2 months, which is not that much.
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5 Comments
Canadian Investor@canadianinvestor · 24m
You should probably speak to an accountant - A deliberate over-contribution to a TFSA is a contribution intentionally made in excess of the contribution limit, generally with the intention of generating returns that outweigh the 1% monthly over-contribution tax. In addition to the regular 1% monthly tax, the CRA can impose a 100% advantage tax on any investment income or capital gains reasonably attributable to the deliberate over-contribution. This tax can continue to apply to additional earnings until the excess contribution and associated earnings are withdrawn. If you get audited but hey if you want to try and game the system on $21 bucks all the power to you 🤷♂️
Joshua Richards
@richards · 43m
So you're banking on your investments producing more than 1% a month to justify the penalty fees?
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