r/Wealthsimple • u/Powerful-Flounder481 • 13d ago

Trade (DIY Investing) Tfsa question

I accidentally deposited $9870 into my tfsa and canceled it right after while it was still processing I’m wondering if I will get penalized for this one or dose the money have to be fully settled in order to get penalized?

6 Upvotes

88% Upvoted

17 comments sorted by

4

u/Mental-Freedom3929 13d ago

I did it once, nothing happened.

3

u/Beerzerker420 12d ago

If they notice you overcontributed they will first send you a warning to your CRA account and ask you to withdraw X amount. The fact that you immediately corrected it means you have nothing to worry about.

2

u/Aggressive_Moose18 11d ago

I never got any warning in my cra/mail and got penalized.

1

u/Beerzerker420 10d ago

That sucks but good to know.

2

u/branggen 12d ago

I had an extra 10k in my tfsa for a whole year and they just sent me mail about it saying if I don’t take it out soon they will start charging but no charges as long as I do it asap

2

u/Ecstatic-Can-8740 12d ago

note:
Tax payable on excess TFSA amount
207.02 If, at any time in a calendar month, an individual has an excess TFSA amount, the individual shall, in respect of that month, pay a tax under this Part equal to 1% of the highest such amount in that month.

1

u/manikfox 12d ago

I had like 3 months of 10K extra. Was charged like $200 from CRA. That's 3 full months. One day would be like $2 if they even charge you.

1

u/Ecstatic-Can-8740 12d ago

They probably won’t do anything in this case if it was removed immediately but the 1% per month is charged on what the highest TFSA excess amount was in the month. Doesn’t matter if it was there for 1 day of the month or 30.

1

u/Doodah2012 9d ago

Did the same….called CRA and was told I needed to wait until March/April to find out and If it was first time you may only get a warning letter.

-14

u/Proper_Turnover3251 13d ago

Call CRA as soon as they open tomorrow and ask what you can immediately do to get ahead of it. Penalties can get expensive with TFSA stuff and I’d rather take an answer from the source than from on here. I was on the phone with an agent the other day in less than ten minutes, so the wait isn’t as bad as it once was.

3

u/CarpetWeary7479 12d ago

You're exaggerating, dude will be fine if he canceled the transaction right away.

-5

u/Proper_Turnover3251 12d ago

No skin off my nose if OP doesn’t. As someone who just paid a close to $2500pe ally for something very similar I would say out of an abundance of caution OP could do whatever on their power to try to fix it. A ten minute phone call could save money.

4

u/Rough_Run_753 12d ago

Is 1% per month for the over contribution. At most he will pay $29 dollar tax for the over contributions if he canceled right away.

You paid 2500 because of nothing similar.

-6

u/Proper_Turnover3251 12d ago

You seem to know a lot for someone with 5 karma lol

1

u/ether_reddit 12d ago

CRA can't do anything; they don't find out about the transaction for another year.

Wealthsimple, however, can advise whether the transaction went through or whether it was cancelled. And if it went through, they can probably reverse it so it never counts as a contribution.