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One of Those Annual TFSA Decision Days for Topped Up Contributors
December 1, 2020
4:59 pm
dougjp
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Talking about fee avoidance of course, withdrawing cash without fees, paying a taxes on a month's worth (limited cost with TFSA rates being what they are), and going back in to TFSA when appropriate next year.

I'm out, then will watch what banks do before deciding where to get back in.

The main accomplishment of almost all organized protests is to
annoy people who are not in them.

December 1, 2020
5:33 pm
Bill
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Exactly, take it out today so no more interest on Jan 1/21, leave a buck in there so you have the TFSA account set up if you ever want to go back, no fees, go where you want in 2021.

December 2, 2020
6:13 am
dougjp
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An unusual time, with the regular savings promos around (2% - 2.3%), and mainly because of those, IMO its timely to look at it. In my case it comes down to paying tax on 2.3% or avoiding tax while getting 1.55% or less.

The main accomplishment of almost all organized protests is to
annoy people who are not in them.

December 2, 2020
7:42 am
Koogie
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I used to hold my TFSA in a HISA but gave up when Peoples Trust abandoned their 3% back a while ago as lower yields than that seemed a waste to me for such a great long term tax free building opportunity. Switched to safe dividend paying equities, which have been very good to that account balance since.

I would consider going back to holding the TFSA in a HISA but not until yields went back above 3% at least. Which doesn't feel like it will be any time soon.

So the annual decision for me at least is pretty easy. Top up existing holdings and carry on.

December 5, 2020
5:40 pm
RetirEd
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All the financial institutions I deal with keep my TFSA (and RRSP) setups on my statements without needing even a penny in them. For years. Check with your FI and leave them fallow in confidence.
RetirEd

RetirEd

December 5, 2020
10:30 pm
Loonie
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FYI, Hubert will close a registered account if empty at year's end. Best to keep a little bit in it if you think you will use it again.
When I complained, they said it costs them money to keep it open and they can't afford that. I had the impression it was regulatory/reporting costs, but not sure.

December 6, 2020
9:57 am
Norman1
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Hubert is correct. An open TFSA, for example, must be reported to CRA each year until it is closed.

This is from CRA's Tax-Free Savings Account (TFSA) Guide for Issuers:

A TFSA annual information return consists of both the TFSA individual records and the TFSA return summary. You have to fill out a return for each TFSAs exists at any time in the year. Once a TFSA is opened, an individual record must be filed, regardless of activity in the account.

Note
If a record is filed in one year indicating that a TFSA was opened, we will expect to receive a record for the same TFSA in each year until such time as a record is filed with an indication that the account was closed in the year.

…. We do not consider a TFSA to have been closed just because there are no funds in the account or there has been no activity during the reporting year, or both.

December 6, 2020
10:39 am
Bill
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These filings to CRA are all electronic upload, can't see that it would cost an FI much if any more to include their zero balance registered accounts along with the rest of the batch.

December 6, 2020
11:05 am
pooreva
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Loonie said
FYI, Hubert will close a registered account if empty at year's end. Best to keep a little bit in it if you think you will use it again.
When I complained, they said it costs them money to keep it open and they can't afford that. I had the impression it was regulatory/reporting costs, but not sure.  

Are you 100% positive regarding closing TFSA??? I have $0 balance most of the year; only time when it has some $ is when moving from HISA to TFSA (Jan 1) and same day moving from TFSA to GIC TFSA.
Never happened account to be closed 'if empty at year's end'???
I will chat with them tomorrow to clarify your statement...

December 6, 2020
11:40 am
JenE
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Achieva Financial closed my TFSA HISA, without informing me, after I transferred all funds from it. I discovered this when I tried to make a deposit the following year.

December 6, 2020
1:41 pm
Loonie
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I can clarify my own statement. It was an RSP that was closed, not a TFSA, but they implied it applied to both. And it happened twice, 2 years in a row.

December 6, 2020
1:47 pm
topgun
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I opened a TFSA in 2009. No spare cash to make a contribution. The account was closed after 2 years at iTRADE. Every FI have rules about dormant accounts before closing account.

Have a Great Day

December 6, 2020
2:50 pm
Dean
Valhalla Mountains, British Columbia
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Bill said

Exactly, take it out today so no more interest on Jan 1/21, leave a buck in there so you have the TFSA account set up if you ever want to go back, no fees, go where you want in 2021.  

Ditto

To keep an account from being closed (that I might want to use later) I keep a small amount (≥ $1.00) on the books. And I also log into the account at least twice a year, to create account 'activity'.

    Dean

sf-cool " Live Long, Healthy ... And Prosper! " sf-cool

December 7, 2020
8:43 am
pooreva
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Loonie said
I can clarify my own statement. It was an RSP that was closed, not a TFSA, but they implied it applied to both. And it happened twice, 2 years in a row.  

As per Hubert CSR, if you have TFSA GIC they will NOT close your TFSA account at the year end.

December 7, 2020
10:41 am
Winnie
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Loonie said
I can clarify my own statement. It was an RSP that was closed, not a TFSA, but they implied it applied to both. And it happened twice, 2 years in a row.  

I can also confirm, that my Hubert TFSA was closed without informing me.

December 8, 2020
12:08 am
Loonie
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pooreva said

As per Hubert CSR, if you have TFSA GIC they will NOT close your TFSA account at the year end.  

Another way of saying that would be that if your TFSA is an empty savings account at the end of the year, they will close it without notice.

December 11, 2020
10:11 am
Alexandra
British Columbia
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I haven't found any problem with Achieva. If you have a GIC TFSA maturing with them and you don't currently have a savings GIC, then just go on chat and they will open one up for you so you can deposit the matured amount to that account. There is no minimum amount that you have to have with them in the savings so you can have zero in there.

December 21, 2020
11:47 am
HISAhopper
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Norman1 said
Hubert is correct. An open TFSA, for example, must be reported to CRA each year until it is closed.

.............................

  

Given I have zero contribution room for 2020, I just opened an EQ TFSA savings account today with $0 in it, will it be reported? or must one wait till Jan 1st to do so?

December 21, 2020
12:14 pm
AltaRed
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Probably, but since you will have a zero balance in it until 2021, what difference does it make if EQ reports zero contributions?

December 21, 2020
1:30 pm
Norman1
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Yes, EQ Bank will report the opening of the TFSA in this year.

TFSA reporting to CRA is not real time. TFSA issuers have until end of February next year to submit the TFSA info for this year.

It's okay to open a TFSA before one has the contribution room to contribute to it. Penalties are on the contributions above contribution room and not on having a TFSA account.

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