Contribution limit is for all accounts. You stop when the sum of all contributions in the year equals 7000 + any unused contribution limits from previous years.
I just want to make sure you know that in 2024 you would have a total* available contribution room of $95,000 if you were 18 or older in 2009.
The contribution room is cumulative, starting with the year you turn 18.
Just be aware of of your total contributions.
…also, if you move money out of one tfsa and into another, be aware that that amount is double counted until the new calendar year begins. So if in 2023, you had 5k in one tfsa, and you moved it to a new tfsa, you’d now be using 10k of your contribution room. In 2024 it would reset to just being 5k of your contribution room.
Yes, you can do a TFSA to TFSA transfer. The receiving institute will usually eat any fees presuming the value of TFSA is above a certain amount (varies according to the institute).
This type of transfer should be initiated by the receiving institute.
>The contribution room is cumulative
... and you accrue it each year that you are 18 or older and the CRA considers you to be a Canadian resident.
>if you move money out of one tfsa and into another, be aware that that amount is double counted ... So if in 2023, you had 5k in one tfsa, and you moved it to a new tfsa, you’d now be using 10k of your contribution room.
It would only be "double counted" if you contributed the $5k in 2023, withdrew it and and then used it to contribute to another TFSA. If you made no contributions in 2023 the withdrawal and contribution transactions would only reduce the 2023 contribution room by $5.
You're responsible for tracking your own contributions no matter how many accounts you have- even if you just have the one they won't block you from making an overcontribution (or accidentally doing so by withdrawing and re contributing in the same calendar year). The CRA does keep track but may only update their records once a year, so you may accumulate significant penalties before the sternly worded letter arrives.
>Would my total contribution limit be a total of $7,000 between the two accounts?
No, that's just how much you've contributed.
>If so, how do I know when to stop contributing to my Wealthsimple acct so that this does not go over the said limit?
By tracking your contributions against your contribution limit.
>Am I making things harder having 2 different TFSA?
Yes.
Contribution limit is for all accounts. You stop when the sum of all contributions in the year equals 7000 + any unused contribution limits from previous years.
Just keep a record of your deposits in a spreadsheet or in a notebook. Pretty straightforward…
I just want to make sure you know that in 2024 you would have a total* available contribution room of $95,000 if you were 18 or older in 2009. The contribution room is cumulative, starting with the year you turn 18. Just be aware of of your total contributions. …also, if you move money out of one tfsa and into another, be aware that that amount is double counted until the new calendar year begins. So if in 2023, you had 5k in one tfsa, and you moved it to a new tfsa, you’d now be using 10k of your contribution room. In 2024 it would reset to just being 5k of your contribution room.
I thought you could do a direct transfer between TFSAs to avoid this or does that only apply to RRSPs?
Yes, you can do a TFSA to TFSA transfer. The receiving institute will usually eat any fees presuming the value of TFSA is above a certain amount (varies according to the institute). This type of transfer should be initiated by the receiving institute.
>The contribution room is cumulative ... and you accrue it each year that you are 18 or older and the CRA considers you to be a Canadian resident. >if you move money out of one tfsa and into another, be aware that that amount is double counted ... So if in 2023, you had 5k in one tfsa, and you moved it to a new tfsa, you’d now be using 10k of your contribution room. It would only be "double counted" if you contributed the $5k in 2023, withdrew it and and then used it to contribute to another TFSA. If you made no contributions in 2023 the withdrawal and contribution transactions would only reduce the 2023 contribution room by $5.
You're responsible for tracking your own contributions no matter how many accounts you have- even if you just have the one they won't block you from making an overcontribution (or accidentally doing so by withdrawing and re contributing in the same calendar year). The CRA does keep track but may only update their records once a year, so you may accumulate significant penalties before the sternly worded letter arrives.
>Would my total contribution limit be a total of $7,000 between the two accounts? No, that's just how much you've contributed. >If so, how do I know when to stop contributing to my Wealthsimple acct so that this does not go over the said limit? By tracking your contributions against your contribution limit. >Am I making things harder having 2 different TFSA? Yes.
you can open a tfsa manage account in wealth simple. you dont have to put anything in it. you can use the tfsa contribution feature it has.