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Turbocharged TFSA
Move your TFSA money now for better returns next year.
Current issue:
- Larry MacDonald is urging Canadians to withdraw TFSA cash this month and move the money into a better-paying TFSA in January. Why? Chances are you’re earning less than 1% and there are TFSAs that give you a positive rate of return after inflation.
- Canadians are keeping up with their mortgage payments, according to the Canada Mortgage and Housing Corp. In fact, the number of households three months or more in arrears is falling.
- Airfare ads must now display the actual total cost of flying including taxes, fees and charges. “We are protecting Canadian air travellers by helping them see, clearly and up front, the full cost of air tickets, so they can make informed travel choices,” Minister of Transport Denis Lebel said in a statement Tuesday. In other travel news, Air Canada has revealed details on its new airline Rouge.
moneysense.ca, 18/12/12
This is really good published article. Such a great yet interesting post. Thank you very much for sharing this useful stuff.
Well, no there isn't a government/tax penalty for switching TFSA providers in mid-year. It just takes a bit more time and work. As the articles says: "Note: The plan can also be transferred between financial institutions within the same year without penalty by filling out the required forms, but this requires more paperwork and may take several weeks."
If you *withdraw* from one provider and *contribute* to another provider in the same year, there is a very high tax/government penalty, though.
It is possible that some TFSA providers charge to transfer funds, but do not charge to withdraw funds. If so, then a year end withdrawal followed by a January 1 contribution to a new provider might be more economical.
If you had your TFSA in a stock market account you can change stocks with no penalty , better than going to another BANK !!! and getting a wonderful 2.55 %
Interesting to learn that there is a penalty for switching TFSA providers in the same calendar year.
only if you existing contributions added to what you recontribute elsewhere puts you over your allowed limit.
so if youve only put in 5000, and your eligible for 20,000 you can withdraw and re-contribute penalty free