Sentences with phrase «over-contribution penalty tax»

Fortunately, when the TFSA was launched in 2009, the rules contained a special provision allowing the CRA to cancel the over-contribution penalty tax provided the excess TFSA contribution, along with any income earned on that excess contribution, is fully removed from the account.

Not exact matches

Deliberate over-contributions may also be subject to increased penalty taxes.

Moving your TFSA money around to various institutions could trigger a tax penalty since it's also against the rules to take money out of a TFSA and transfer it to a plan at another financial institution in the same calendar year — you'll get hit with an over-contribution penalty.

This could put taxpayers in an over-contribution situation and subject them to a penalty tax of one per cent per month on the amount of their over-contribution.

If you simply walk into your financial institution and withdraw all your TFSA funds and walk across the street to a competitor to make a new contribution, unless you have unused TFSA contribution room carried forward, you will be in an over-contribution situation and subject to penalty tax.

In some cases, this confusion can lead to penalty tax on over-contributions.