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Discussion Starter #1
I opened/deposited $2000 in an ING TFSA in August 2009. I foolishly withdrew all but $300 a couple months later in October. Since then I've just had that $300 sitting there.
My question is regarding the $5000 limit now. I know I can redeposit the $1700 penalty free (is that IN the next year? i.e 2010, or do I have to wait a full year from withdrawal?) but I don't want to redeposit money in that ING account, I want to open a brokerage account.
Am I free to recontribute that $1700 in a brokerage account without going over the limit or am I stuck using my ING account now? If I'm stuck, is there any way to close out that ING account and get my full limit back?
 

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You can recontribute an amount previously withdrawn into any TFSA in your name ... doesn’t have to be the same one you withdrew from.

You could deposit ~$9,700 today, to the broker of your choice, without going over the limit.
 

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I opened/deposited $2000 in an ING TFSA in August 2009. I foolishly withdrew all but $300 a couple months later in October. Since then I've just had that $300 sitting there.
My question is regarding the $5000 limit now. I know I can redeposit the $1700 penalty free (is that IN the next year? i.e 2010, or do I have to wait a full year from withdrawal?) but I don't want to redeposit money in that ING account, I want to open a brokerage account.
Am I free to recontribute that $1700 in a brokerage account without going over the limit or am I stuck using my ING account now? If I'm stuck, is there any way to close out that ING account and get my full limit back?
I can confirm cardhu's post. You can contribute that $1,700 anywhere you want. Assuming you made no other contributions other than that $2,000, then your TFSA contribution limit for 2010 is $9,700. The withdrawal/deposit rule is based on the calendar year. You can withdraw on December 31st of one year and redeposit the same amount on January 2nd if you so wish.
 

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Discussion Starter #5
Follow up question... What happens when you have built up interest/gains that take you over the limit and you then withdraw money. can you recontribute next year that same amount or do you get capped at the 5000/year limit?

Say I had $10000 in now and it's grown to $12000. If I take $5000 will I be able to put that $5000 back in next year, or only $3000? (plus the $5000 for next year's limit, of course)
 

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Follow up question... What happens when you have built up interest/gains that take you over the limit and you then withdraw money. can you recontribute next year that same amount or do you get capped at the 5000/year limit?

Say I had $10000 in now and it's grown to $12000. If I take $5000 will I be able to put that $5000 back in next year, or only $3000? (plus the $5000 for next year's limit, of course)
You can put the $5k back in next year. Earnings within the TFSA do not count against your contribution room. Just like an RRSP. :)
 

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I immigrated to Canada in Aug 2009.I did my 2010 contributoins,Can I contribute anothe 5000,keeping in mind I was partial resident in 2009?

Thanks!
 

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Discussion Starter #9
Just bringing back this thread with another TFSA question. Do you have to have a TFSA open to start collecting contribution room? I wasn't under the impression you did, but this quote

"For example, an 18 year old who files a tax return and opens up a Tax Free Savings Account (TFSA) – even if there is no money to deposit – begins accumulating contribution room every year afterward."
from http://www.theglobeandmail.com/globe-investor/investment-ideas/investor-education/ten-money-tips-for-young-people/article1363207/ is making me think otherwise. I've had a TFSA since the start, but if it's true what they say then I should be advising some loved-ones to open an account.
 

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Just bringing back this thread with another TFSA question. Do you have to have a TFSA open to start collecting contribution room? I wasn't under the impression you did, but this quote

"For example, an 18 year old who files a tax return and opens up a Tax Free Savings Account (TFSA) – even if there is no money to deposit – begins accumulating contribution room every year afterward."
from http://www.theglobeandmail.com/globe-investor/investment-ideas/investor-education/ten-money-tips-for-young-people/article1363207/ is making me think otherwise. I've had a TFSA since the start, but if it's true what they say then I should be advising some loved-ones to open an account.
That's false. You don't need to have an account open to accumulate contribution room.
 
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