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For those of you with a TFSA (Tax Free Savings Accounts...)
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| Swamper |
LINK
Consider making withdrawals from your Tax-Free Savings Account by Dec. 31.
"If you have set up a TFSA and you're planning a withdrawal, consider doing so before the end of 2009 rather than early 2010," KPMG advises. Why is that? The firm points out that amounts withdrawn aren't added to your TFSA contribution room until the start of the year after the withdrawal. So if you have $5,000 in your TFSA and want to take out $4,000, do it in December. That way, you could re-contribute that $4,000 along with your new 2010 contribution limit of $5,000 as early as January 2010. If, on the other hand, you withdraw that $4,000 in January, you won't be able to re-contribute it until 2011. |
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| FunkyCrew |
| quote: | Originally posted by Swamper
LINK
Consider making withdrawals from your Tax-Free Savings Account by Dec. 31.
"If you have set up a TFSA and you're planning a withdrawal, consider doing so before the end of 2009 rather than early 2010," KPMG advises. Why is that? The firm points out that amounts withdrawn aren't added to your TFSA contribution room until the start of the year after the withdrawal. So if you have $5,000 in your TFSA and want to take out $4,000, do it in December. That way, you could re-contribute that $4,000 along with your new 2010 contribution limit of $5,000 as early as January 2010. If, on the other hand, you withdraw that $4,000 in January, you won't be able to re-contribute it until 2011. |
thanks Del
I'm just waiting to add another $5K :) |
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| SniFFleS |
| If you're playing the market with your account its also a good idea to pull out the gains if u have anything substantial. Then put back the beginning of the next year. That way you lock in the growth of the amount you can contribute. |
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| StereoPrincess |
| mmmm. good thinking. |
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| Swamper |
| quote: | Originally posted by SniFFleS
If you're playing the market with your account its also a good idea to pull out the gains if u have anything substantial. Then put back the beginning of the next year. That way you lock in the growth of the amount you can contribute. |
Maybe I'm missing something but I don't get this -- why sell something early solely to cash out? You don't 'increase' your contribution amount for the following year by doing this... |
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