Have been enjoying your videos very much and appreciate the clear info on these topics. One thing that stuck out in this one is at the end when you say there are no implications in withdrawing money from a TFSA. This is essentially true but leaves out the effect on contribution room in the year that the withdrawal is made.
CRA & My Service Canada are much easier to get into now because they allow you to use your banking credentials to log in and MFA makes it very safe. I log into both services regularly and I find it getting better and better each year.
Excellent presentation. You've told me all/most of this but I always appreciate a review. "Pull the band-aid off..." 🤪 Oh ya. I gotta do that every time I log in to CRA.
I just asked that question above. Are you sure? So I put in 50k, leaving 35 k contribution room. Then investment triples to 150K, I pull out 50k.......does CRA look at it as full contribution room again even though there is still 100k sitting in there?
@@rubberroast1598 Assuming same year no...$35k. Then Jan 1 following year, 35k + $50 wdrl + next year contribution amount. If you full contribute that year then contribution total plus the $100k would be balance at time of top up. Timing is VERY important here
@@TripleDeano Sorry bit confusing. For simplicity lets say i have 100k contribution room. I put in 50k, which leaves 50k contribution room. it triples 12 months later. i pull out 100k of that investment. How much contribution room do i have. Still the same 50k? Or more because i withdrew the 100k?
I'm new to the channel and really enjoying your content as it's broken down in an easy to understand format. I'm a Canadian that's been living abroad since 2020 so my husband and I are classified as non-residents in Canada. We have LIRA, RRSP and TFSAs with Questrade and although it's not ideal contributing to the RRSP when we aren't making income in Canada, I believe that's really our only option (so long as there's RRSP contribution room). I don't believe we're allowed to contribute to a TFSA as a non-resident and a LIRA would also be off the table.
Thank you, Claire :) Living abroad definitely complicates what you can do with your Canadian registered accounts. No doubt. Here’s a solid article from RBC that can help you navigate it: ca.rbcwealthmanagement.com/delegate/services/file/124406/content
Thank you again for a great video. My husband and I we are near retirement with 2 years apart, but we still have mortgage on the house with quite high rate at the moment since we renew the mortgage close 5 y variable. I like to ask you if I can move money from RRSP into TFSA in the intention to make extra payments in the mortgage. It is this possible instead to take money out from RRSP directly,which I don’t want to do that for obvious reason. Thank you and your videos are very much appreciated.
If i contribute 50k into TFSA, it will reduce my contrubution room by 50k, of course. But what happens if that investment grows to 80k, and i withdraw the profit of 30k. Is my contribution room unaffected, or do withdrawals increase the contribution room again? So would CRA look at it like my net contribution was only 20k?
Thank you for the video. If I arrived in Canada in September 2022, can I use the 2022 contribution limit for my TFSA? Or do I need to start counting my limit from 2023
Great Video! i got a Normal savings Account How much do you need in it, before you have to pay tax's to the government? i made 20 dollars this year, so do i get a T?? on the 20 dollar so this is class's has Taxable income? love to know whn dose the banks tell the goverment i made Interest on my savings?
Thanks! And great question. CRA has a short answer to that here: www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-12100-interest-other-investment-income.html
@@wellbuiltwealth Thank you a great help even if i do not get a slip i will inform work out how much to add just not worth it down the road thanks again
Hi Rhys! My accounting teacher was going over TFSA's and I wasn't really sure if he was correct, hoping you can help clarify. Consider that the ceiling is $10,000 instead of the $90k or whatever it is now. So I put in $10,000, max it out. Next year nothing gets added to the contribution room (for examples sake), so its still max $10k. My investments grow from $10k to $15k, and I withdraw $15k. He said the next year (where the ceiling doesn't change), I now have $15k contribution room. So he's saying that you can basically balloon your ceiling if you take out above and beyond the ceiling. So for example you buy a stock for $50,000 and you hit the jackpot and its now worth $500,000. You withdraw it, and the following calendar year after withdrawal, the ceiling of your TFSA is now $500,000. I don't believe this to be true, but he's the accountant, not me 😂. Can you confirm if this is correct?
@@wellbuiltwealth yes and no there has been recent court cases that have made those gains taxable as the court ruled the person was a professional investor. Unfortunately the federal judges are appointed so they won’t go against the government.
Great video. But one thing I was looking for which you didn’t cover was how do withdrawals affect your limit. If your limit is $88,000 and let’s say you have deposited a total of $50,000 from 2009 till date. Now let’s assume, your $50,000 has grown to $60,000 over the years. Now let’s say you withdraw $50,000, leaving $10,000 in the account. Now what is your remaining room? It is $88,000 or $78,000?
If your limit is $88k and you've only contributed 50k, then your contribution room is 38k. If you withdraw 50k (the amount you originally put in), you are back to 88k for contribution room. The 10k you earned is not considered a contribution, it's tax free earnings.
Have been enjoying your videos very much and appreciate the clear info on these topics. One thing that stuck out in this one is at the end when you say there are no implications in withdrawing money from a TFSA. This is essentially true but leaves out the effect on contribution room in the year that the withdrawal is made.
Thank you! And you are totally correct!!
Well done Rhys. Good to see you posting videos again!
Oh buddy! You are fast! Thanks for all your guidance on this. I really am quite fond of you.
CRA & My Service Canada are much easier to get into now because they allow you to use your banking credentials to log in and MFA makes it very safe. I log into both services regularly and I find it getting better and better each year.
I suggest not relying on their info. They rely on reporting which may be slow. Account for your own transactions to avoid 1% penalty per month
Excellent presentation. You've told me all/most of this but I always appreciate a review. "Pull the band-aid off..." 🤪 Oh ya. I gotta do that every time I log in to CRA.
I appreciate your clear and concise explanations! Easy to understand and follow.
Thank you, Gord!
you made it very easy to understand! thanks
Biggie for me is that u can remove principle and gains, and that is added to your contribution room for next tax year. So it could get to a million 🙂
I just asked that question above. Are you sure? So I put in 50k, leaving 35 k contribution room. Then investment triples to 150K, I pull out 50k.......does CRA look at it as full contribution room again even though there is still 100k sitting in there?
@@rubberroast1598 Assuming same year no...$35k. Then Jan 1 following year, 35k + $50 wdrl + next year contribution amount. If you full contribute that year then contribution total plus the $100k would be balance at time of top up. Timing is VERY important here
@@TripleDeano Sorry bit confusing. For simplicity lets say i have 100k contribution room. I put in 50k, which leaves 50k contribution room. it triples 12 months later. i pull out 100k of that investment. How much contribution room do i have. Still the same 50k? Or more because i withdrew the 100k?
THANK YOU for explaining this so concisely! So glad I found this amazing channel!
And thank you!!
I'm new to the channel and really enjoying your content as it's broken down in an easy to understand format. I'm a Canadian that's been living abroad since 2020 so my husband and I are classified as non-residents in Canada. We have LIRA, RRSP and TFSAs with Questrade and although it's not ideal contributing to the RRSP when we aren't making income in Canada, I believe that's really our only option (so long as there's RRSP contribution room). I don't believe we're allowed to contribute to a TFSA as a non-resident and a LIRA would also be off the table.
Thank you, Claire :)
Living abroad definitely complicates what you can do with your Canadian registered accounts. No doubt. Here’s a solid article from RBC that can help you navigate it: ca.rbcwealthmanagement.com/delegate/services/file/124406/content
Great content and explanation ❤
Very interesting, you look after me very well. This video highlights this. Very helpful, nice plain English.
Thank you! 😃
Awesome explainer Rhys!
Hey, thanks!
Great video,
thank you
Thank you again for a great video. My husband and I we are near retirement with 2 years apart, but we still have mortgage on the house with quite high rate at the moment since we renew the mortgage close 5 y variable. I like to ask you if I can move money from RRSP into TFSA in the intention to make extra payments in the mortgage. It is this possible instead to take money out from RRSP directly,which I don’t want to do that for obvious reason.
Thank you and your videos are very much appreciated.
Thank you :)
And I wish! But unfortunately, you can’t transfer from an RRSP to a TFSA. Sorry 😞
If i contribute 50k into TFSA, it will reduce my contrubution room by 50k, of course. But what happens if that investment grows to 80k, and i withdraw the profit of 30k. Is my contribution room unaffected, or do withdrawals increase the contribution room again? So would CRA look at it like my net contribution was only 20k?
they should set at least 1 million TFSA room per year!
Thank you for the video. If I arrived in Canada in September 2022, can I use the 2022 contribution limit for my TFSA? Or do I need to start counting my limit from 2023
You’re welcome!
You will need to check with CRA as they have your exact room calculated and ultimately, it their numbers that are king.
Great Video! i got a Normal savings Account How much do you need in it, before you have to pay tax's to the government? i made 20 dollars this year, so do i get a T?? on the 20 dollar so this is class's has Taxable income? love to know whn dose the banks tell the goverment i made Interest on my savings?
Thanks! And great question. CRA has a short answer to that here: www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-12100-interest-other-investment-income.html
@@wellbuiltwealth Thank you a great help even if i do not get a slip i will inform work out how much to add just not worth it down the road thanks again
Hi, are you based in Vancouver, BC? I’m thinking of retiring next May.
We work with people all over Canada but yes, based right outside of Vancouver :)
Hi Rhys! My accounting teacher was going over TFSA's and I wasn't really sure if he was correct, hoping you can help clarify.
Consider that the ceiling is $10,000 instead of the $90k or whatever it is now. So I put in $10,000, max it out. Next year nothing gets added to the contribution room (for examples sake), so its still max $10k. My investments grow from $10k to $15k, and I withdraw $15k. He said the next year (where the ceiling doesn't change), I now have $15k contribution room. So he's saying that you can basically balloon your ceiling if you take out above and beyond the ceiling. So for example you buy a stock for $50,000 and you hit the jackpot and its now worth $500,000. You withdraw it, and the following calendar year after withdrawal, the ceiling of your TFSA is now $500,000. I don't believe this to be true, but he's the accountant, not me 😂. Can you confirm if this is correct?
Accountant is correct!! :)
@@wellbuiltwealth yes and no there has been recent court cases that have made those gains taxable as the court ruled the person was a professional investor. Unfortunately the federal judges are appointed so they won’t go against the government.
I just checked my CRA TFSA room , but in the video you are saying I need to check in February, is it true ?
Well, that’s what CRA says, but last year we had to wait longer than Feb for the updated numbers.
@@wellbuiltwealth my god I already filled up the room that showed on CRA account 🥲 do I need to withdraw ？
You might. Sorry 😞
Great video. But one thing I was looking for which you didn’t cover was how do withdrawals affect your limit.
If your limit is $88,000 and let’s say you have deposited a total of $50,000 from 2009 till date. Now let’s assume, your $50,000 has grown to $60,000 over the years. Now let’s say you withdraw $50,000, leaving $10,000 in the account. Now what is your remaining room? It is $88,000 or $78,000?
Great point. I’ll have to make another video on that. I’ll put it in the queue :)
If your limit is $88k and you've only contributed 50k, then your contribution room is 38k. If you withdraw 50k (the amount you originally put in), you are back to 88k for contribution room. The 10k you earned is not considered a contribution, it's tax free earnings.
@@callilikei7260 Ok. So that means that you only need to look at what you add and what you withdraw to determine how much room you have.
Dont forget that 240 you got from that 400 you get taxed 13% for every dollar you spend of that...
So fun, right?!
I can spend "MAGIC" :)
Thank you