withdrawn from an RRSP. An interesting but not well known feature of the TFSA is how withdrawals are treated. The withdrawn amount is added to the following year’s contribution limit (subject to a maximum annual amount). Unused contribution is carried forward. The Government of Canada source details this and the Royal Bank summarizes it nicely in addition to explaining over-contribution penalties.
A good tax strategy is as important as a good investment decision and together just may be a recipe for success. If a TFSA withdrawal is added to next year’s contribution limit and you are anticipating a bearish December but a return to a bull market leading up to legalization then is this not a strategy in itself because you can put the withdrawn money back into the TFSA in January (there are maximums regardless of your withdrawn amount).
Until next time we continue to connect the dots so that you can invest long and prosper. Remember, there is no investment, legal, or tax advice being given or suggested in any form. Absolutely no wrong doing is being suggested of any person who is a paid stock promoter or analyst but rather to provide examples to subscribers of what may be perceived as a conflict of interest or a threat to impartiality.
See you in 2018 – the year when everything changes!
Louis. Kyron, CPA, CGA @Louis. Kyron
CONGRATULATIONS!!!
From the team at
CannaInvestor Magazine Canada
on receiving your
Health Canada Medical
Marijuana Cultivation License
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