[CuriousReader]

We had a thread here sometime ago about strategy to deliberately over-contribute to TFSA for bigger gain than the penalty ... well, I guess that move will be history

Ottawa targets abusers of tax-free savings accounts

 

[Berubeland]

Am I the only one who thinks that taxing them 1% per month on the overcontribution is a good sum to add to the coffers of our fine government?

I'm thinking with that kind of interest penalty the house would win more often than the gambler.

 

[dogcom]

I agree, being paid 1 percent a month is a good deal for the government.

 

[Alexandra]

It was only a matter of time before they closed that loophole...I'm surprised it took this long.

I wonder if the 100% levy on overcontributions is going to be on contributions going forward, or applied to pre-existing overcontributions?

 

[CanadianCapitalist]

I find it far more interesting that the ink is barely dry on TFSAs and here comes the first tweaks. In finance, as in other areas, the only constant seems to be change. Wonder how much the TFSA will change in say the next five years...

 

[OhGreatGuru]

As people keep abusing the intent of the plan there are going to have to be even more "tweaks". Read the other thread where a poster was proposing to deliberatley overcontribute $1M, withdraw it a year later and pay the penalty, but still be able to keep the earnings on the overcontribution inside the plan.

 

[canadianbanks]

We can only hope that the Canadian government won't do another tax grab with the TFSA as they did with income trusts...