Q&A: TFSA Overcontribution
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Question: My question is this; I think that I might have overcontributed to my TFSA. Is there any way of finding out if I have done so? The maximum amount at this point in time is $25,500 but I have $30,500 in the account. It is possible that the extra amount may be due to earnings but I am not sure. Also, if there is an overcontribution, what should I do? Do I just take out an amount that will get me back to the allowable maximum? – Richard C., Toronto
Gordon Pape answers: It’s very possible that the extra money is profit earned within the plan. If so, it would not represent an overcontribution. The best person to answer your question is the advisor who handles your TFSA. He/she can quickly review the records to see if any overcontribution was made. You can also check through the My Account feature of the Canada Revenue Agency website at www.cra-arc.gc.ca/esrvc-srvce/tx/ndvdls/myccnt/menu-eng.html.
If you have made an overcontribution, it should be withdrawn from the plan as soon as possible to minimize any penalty.