What is tfsa contribution for 2011

If you can't contribute the maximum allowable in a given year, you can catch up in the future. Unused contribution amounts can be carried forward indefinitely and used in subsequent years.

TFSAs are flexible. You can withdraw funds any time and the amounts withdrawn in a given year are added back to your contribution room for the next year. For example, you can withdraw an amount in December, then re-contribute that amount in January. There is a penalty if you accidentally contribute more than your allowable limit.

Anyone 18 or older and who has a valid social insurance number is eligible to open a TFSA. Contribution room accumulates beginning in the year in which a person turns While contributions to a TFSA are not tax deductible, withdrawals are tax free. Money withdrawn from a TFSA in a future year can be used to make a down payment on a home or purchase a car, for example.

Report suggests investors consider delaying purchases until after distributions are made. Each year, a certain amount of contribution room becomes available to you.

The limit has changed three times since The most common way that people over-contribute to their TFSAs is by recontributing money to their account before the start of the following year. Make sure that you keep track of what you contribute and withdraw from your TFSA to avoid making any over-contributions that could get in the way of you and your savings goals. All the money earned by the assets in your TFSA capital gains, dividends, and interest , are sheltered from tax. A wealth of knowledge delivered right to your inbox.