How much money does the government contribute to an RESP? + MORE Feb 13th
’Tis the season for tax-loss selling in Canada + MORE Dec 11th
Planning to cash in on your home to help fund retirement? Here’s how to do it right + MORE Dec 19th
The First Home Savings Account has some surprising benefits — even if you don’t end up with that home + MORE Apr 17th
“My financial advisor overcontributed to my TFSA—now what?”
– moneysense.ca
What happens now? Do I ask him to repay the commissions he received with that investment? I pay him a management fee, but he screwed up and I need to get compensated for this.
Who do I talk to to report this?—Natalie
Sorry to hear about your penalty with Canada Revenue Agency (CRA), Natalie. Before I answer your question, I am going to do a quick overview of the contribution limits for tax-free savings accounts (TFSAs) in Canada, contribution room calculations and potential TFSA penalties.
What is the contribution limit for a TFSA?
If you were born in 1991 or earlier, you have earned $81,500 of cumulative TFSA contribution room as of 2022. If you were born in 1992 or later, your TFSA room began to accumulate the year you turned 18. It is not pro-rated in the first year and continues to accumulate each year thereafter…