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Waivers of TFSA overcontribution tax
January 18, 2022
6:17 pm
Bill
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That's too bad. We have to double and triple check before we hit send. Because the fi's have to report in and outs of these registered accounts to CRA I kinda doubt they can be "reversed".

January 18, 2022
6:25 pm
HermanH
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Double-check with your FI; if you do it within 24 hrs, they might be able to reverse the transaction. It does not hurt to ask. Glad that you will still be okay, regardless. sf-smile

January 18, 2022
7:01 pm
Norman1
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TFSA transactions aren't due from the TFSA issuers until end of February next year.

There should be time to correct errors before they are reported to CRA.

January 19, 2022
6:28 am
Bill
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An error made by the institution I can see correcting. But an individual has done the transaction, fi had nothing to do with it, and the fi is required to administer registered accounts and report ins/outs to CRA (doesn't matter that it doesn't have to do so until the following year), so I wonder how free they are to reverse plus not report 2 transactions. And could I contribute in January and then in October tell fi it was a mistake, please reverse as I know you don't have to report until next February?

March 2, 2022
6:44 pm
RetirEd
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AltaRed, I think we both know what you meant by this:

That is almost as simple a process as it can be, with one exception being permanent loss of contribution room for any withdrawal.....as with RRSPs (no re-contribution possibility). Is that what folks want?

I read it as saying there's some sort of "permanent loss of contribution room" in TFSA accounts, which I do not undeerstand to be possible. Dis I mis-parse you?
RetirEd

March 2, 2022
7:54 pm
COIN
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The TFSA in "My Account" shows a "contribution room" that seems overly high.
What happens if the CRA decides to reduce the contribution room at a later date?

March 3, 2022
4:58 am
Bill
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All your 2021 TFSA activity might not be showing yet.

CRA can't "decide" to reduce anyone's contribution room, don't worry.

March 3, 2022
8:21 am
savemoresaveoften
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COIN said
The TFSA in "My Account" shows a "contribution room" that seems overly high.
What happens if the CRA decides to reduce the contribution room at a later date?  

i would not trust CRA "contribution room" at all. If you contribute Jan1, u may not see it reflected until dec31 on the CRA site...

March 3, 2022
9:01 am
Bill
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Actually any contribution in a year may not show up on CRA until a few months into the next year. Keep your own records.

March 3, 2022
9:01 am
Alexandra
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You should always keep a simple running list of all TFSA contributions. You know on a 8-1/2 /x 11 lined paper pad. We are all individually responsible for knowing our TFSA room. It will eliminate any confusion. EXAMPLE:
2009 Tangerine $5000
1010 Achieva $5000
and so on right down to 2022 contributions. And keep a running total.

According to CRA under benefits and credits page it says my 2022 TFSA contribution room is $18,514.45.

So, when I look at their online transaction summaries, it does not show my 2021 Cont. from EQ Bank of $6K or the 2022 Cont. with CIBC of $6K. Also, it does not show $6,614.45 that was cashed in on Jan of 2021, which was re-contributed in 2022 at another bank. Now I add up the $6K + $6K + $6,514.45 = $18,514.45.

Thus, I have NO contribution room left.

March 3, 2022
10:19 am
Norman1
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The TFSA contribution room shown in CRA's "My Account" is not live and is not legally significant. As others and I mentioned, TFSA issuers have until end of next February to submit the TFSA transactions to CRA.

Someone overcontributing because of that stale contribution room will have to pay a 1% per month tax until the overcontributions are withdrawn or their contribution room grows enough to cover the overcontributions.

March 3, 2022
10:40 am
Loonie
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I agree. it would be better, really, if CRA did not post this information, as it is quite unreliable, and people are making mistakes by using it - which cost them money.

March 3, 2022
10:48 am
Bill
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I find the CRA MyAccount TFSA info very helpful as it's official CRA validation of my own record-keeping. Being a patient guy helps, I don't even look at it until April or so to verify I'd calculated the previous Jan 1 amount properly. So far we're good partners, I've found not one CRA or my own error since TFSAs started!

March 3, 2022
11:44 am
Loonie
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It's not about what has worked for Bill personally, as he is substantially more conversant with CRA procedures and rules than most people and obviously doesn't require this "service" anyway.

For someone who is always complaining about government wasting money, here's a good example that could easily be struck from the books.

It would make much more sense to wait until FIs are capable of instantaneous reporting rather than providing inaccurate information as is presently the case for much of the year.

March 3, 2022
1:09 pm
Bill
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I'll decide what I "require", but thanks Loonie, and as I already said it's a useful confirmation from the CRA, who indeed at the end of the day has the final say, of my calculations. I file paper returns, as late as possible, I often don't get my NOA until June so it's nice to have it a bit sooner. And it actually costs virtually zip, done by computers. But I don't find that you complain excessively about gov't waste, though I do join you in not liking gov't handouts to other people - I want it all for ME!

And it actually IS what works for me personally, Loonie, as you are not a final arbiter of what "most people" can and can't do. Can't speak for your buddies but at least among my circle "most" easily comprehend the concept of Jan 1 numbers not being there until April or so. Easily.

And, fyi, there's actually nothing "inaccurate" about what's posted, it's bang on as I said. Regardless, I bet CRA keeps posting this info, feel free to ignore it (you don't even use My Account, if I recall you saying).

March 3, 2022
1:18 pm
Loonie
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Bill had spoken clearly for him and his circle.

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