RealMortgageSolutions

🚨🇨🇦 YOUR TFSA IS TAX-FREE. YOUR MISTAKES ARE NOT. Here’s a CRA rule that could cost Canadian investors hundreds of dollars. Imagine this: 💰 You withdraw $20,000 from your TFSA in November. 🏦 You change your mind and put the $20,000 back in December. Seems harmless, right? WRONG. If you’ve already used all your available contribution room, that deposit creates a $20,000 overcontribution. 🚨 CRA penalty: 1% per month on the highest excess amount. That’s $200 for December alone. The mistake? TFSA WITHDRAWALS DON’T CREATE NEW CONTRIBUTION ROOM UNTIL JANUARY 1 OF THE FOLLOWING YEAR. And here’s what makes this especially frustrating. It’s your money. You already paid income tax before investing it. But misunderstanding one contribution rule can trigger a penalty. Canada has millions of TFSA holders. Yet one of the most valuable investing accounts in the country comes with a rule every investor should understand. TAX-FREE DOESN’T MEAN MISTAKE-FREE. 🍁 @wealthmoose #Canada #TFSA #Investing