Author Topic: TFSA contribution room 2018  (Read 1141 times)

Kayteekate

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TFSA contribution room 2018
« on: December 18, 2017, 01:15:28 PM »
Hello fellow mustachians!

I have a question about withdrawing from tfsa before the year ends and then redepositing in the new year. As to avoid the direct transfer fees that banks charge.

If my currrnt tfsa is say $54k and I withdraw that does that mean I have a total contribution room of $59 500 ($54k + $5500) for 2018?

Hope my question makes sense, thanks!

KMMK

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Re: TFSA contribution room 2018
« Reply #1 on: December 18, 2017, 02:50:30 PM »
Yes, that is how it works.
Make your non-MMM friends join my money club and I'll beat them into shape! https://www.yourlifemoneycoaching.com/home/meenasmoneyclub/

You are invited to the best Canadian party of 2018. Don't disappoint me by no-showing.
https://forum.mrmoneymustache.com/meetups-and-social-events/party-at-snacky's-house-summer-2018!/

Kayteekate

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Re: TFSA contribution room 2018
« Reply #2 on: December 18, 2017, 02:56:04 PM »
Okay and I won't over contribute because the extra room was from interest that was earned?

sieben

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Re: TFSA contribution room 2018
« Reply #3 on: December 18, 2017, 04:05:30 PM »
Yup!

I know it seems weird when you've had a certain limit, take more money out then you put in and the next year your limit is higher but that's how it works.

You can think about that growth kind of like a stomach. The growth that happened in your TFSA stretched it out, so even though you took that money out for a bit the TFSA is still stretched out and you can put that extra bit back in. Without running into any issue. :)

Kayteekate

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Re: TFSA contribution room 2018
« Reply #4 on: December 18, 2017, 06:51:26 PM »
Thanks for explaining to me Sieben!