Posted on: 20-02-09 08:36:03
Hello,
I need more guidence and knowledge about TFSA vs. Saving A/c.
As TFSA account has limitation of $5000/ per year so thinking to use it as it is tax free. My questions is if I put $5000/- in TFSA and after 2-3 months if there is an emergencey Can I withdraw all $500o ? Or I have to maintain minimum amount ? Is their any penalty for not having minimum funds, zero funds and closing account ? what are the others pros and cons for having TFSA vs Saving account ? Like RRSP dead line ( March 2nd) , TFSA has any dead line to open account or we can open it anytime in a year as there is no tax advantage.
Thank you.
Quote:Yes
Originally posted by happy2004
My questions is if I put $5000/- in TFSA and after 2-3 months if there is an emergencey Can I withdraw all $500o ?
Quote:The govt. doesn't impose any minimum limit or fees, etc.
Or I have to maintain minimum amount ? Is their any penalty for not having minimum funds, zero funds and closing account ?
But your bank/financial institution might, depending on what type of product you have selected within the TFSA.
Some of the banks are charging $25 for withdrawals and $50 for TFSA-to-TFSA transfers.
The only constraint from Govt side is that any withdrawals cannot be re-deposited in the same year.
It will get added to your contribution room for next year.
Quote:Calendar year.
Like RRSP dead line ( March 2nd) , TFSA has any dead line to open account or we can open it anytime in a year as there is no tax advantage.
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