The TFSA is one of the best deals in Canadian personal finance: contribute after-tax dollars, grow them tax-free, withdraw them tax-free. Millions of Canadians use it exactly as intended — and thousands get a nasty surprise every year from the Canada Revenue Agency. That surprise is the overcontribution penalty: 1% per month on every dollar you contribute above your limit, … [Read more...] about The TFSA Overcontribution Penalty: 1% a Month on Every Extra Dollar
TFSA
TFSA vs RRSP: The $50,000 Rule That Picks the Winner for You
If you earn around $50,000 a year in Canada, you have probably heard the same advice from everyone: "just contribute to your RRSP" or "just use your TFSA." The truth is less exciting but far more useful. Neither account is the automatic winner. The winner is decided by one number: your marginal tax rate today versus your marginal tax rate when you withdraw the money. Get that … [Read more...] about TFSA vs RRSP: The $50,000 Rule That Picks the Winner for You