# Is it possible to save 15K in TFSA in one year



## saleemjosh (Feb 7, 2014)

Hi, 
I am moving to Canada in next month. I am wondering is it possible to save 15K in TFSA this year. As I read TFSA rules one can save 5500 per year and 31K maximum (from 2009 to 2014).
As I do not have anything saved so far and I m just moving to Canada, can I save 15K this year. I am just wondering if there is any possibility like that. 
Or is it 5500 CAD (saving maximum) for each year and no more than that.


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## Argonaut (Dec 7, 2010)

You can only use $5500 total this year, since this is your first year in Canada. You can't use any of the previous years numbers, but if you live in Canada longer you can continue to add the contribution amount the next time it comes available.


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## saleemjosh (Feb 7, 2014)

Thanks Argonaut, 
I really appreciate your time and reply.


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## iris_lf (Feb 13, 2014)

Argonaut said:


> You can only use $5500 total this year, since this is your first year in Canada. You can't use any of the previous years numbers, but if you live in Canada longer you can continue to add the contribution amount the next time it comes available.


I think this is wrong...My parents immigrated to Canada in 2011...Their contribution room has been calculated since the introduction of TFSA


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## Canadian (Sep 19, 2013)

Contribution room starts after one attains residency status and files their first tax return (and is over 18).


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## hystat (Jun 18, 2010)

iris_lf said:


> I think this is wrong...My parents immigrated to Canada in 2011...Their contribution room has been calculated since the introduction of TFSA


something fishy there - get a second opinion


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## Synergy (Mar 18, 2013)

Canadian said:


> Contribution room starts after one attains residency status and files their first tax return (and is over 18).


That doesn't sound correct.



> You get the full $5,000 contribution room automatically every year you are a resident of Canada (age 18 or older) with a valid Social Insurance Number. Since you have been here two years, you can now put up to $10,000 into your TFSA. As a new Canadian there are other potential tax issues to be aware of, so it’s well worth your time to visit the CRA’s website or consult with a tax adviser.


http://www.moneysense.ca/invest/ask-moneysense

Note that the current TFSA limit for 2014 is $5500.


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## Canadian (Sep 19, 2013)

Synergy said:


> That doesn't sound correct.


That's what I was told by the CRA - unless the rep fed me wrong information.


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## Synergy (Mar 18, 2013)

This link may help:
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/tfsa-celi/lgbl-eng.html



> Non-residents of Canada
> 
> If you become a non-resident of Canada, or are considered to be a non-resident for income tax purposes:
> 
> ...


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## iris_lf (Feb 13, 2014)

:rolleyes2:


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## the-royal-mail (Dec 11, 2009)

The system is probably not smart enough to realize they were not citizens until 2011. It probably just looked at their age and gave out the figure. I agree with the above - better get this CONFIRMED (not from websites) *before *contributing.


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## Canadian (Sep 19, 2013)

@Syngergy - how would the CRA know someone attained residency if they haven't filed a tax return?


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## stanimal (Aug 20, 2013)

Canadian said:


> @Syngergy - how would the CRA know someone attained residency if they haven't filed a tax return?


Once you become a permanent resident, you are issued a new SIN (to replace your temporary SIN), and this information is shared with the CRA.


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## Canadian (Sep 19, 2013)

stanimal said:


> Once you become a permanent resident, you are issued a new SIN (to replace your temporary SIN), and this information is shared with the CRA.


That sounds too easy/efficient... lol... look at the agency we're talking about.


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## praire_guy (Sep 8, 2011)

When it comes to collecting money, there is no organization more efficient than CRA. 

Defiantly double check this. It will catch up with you.


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## Canadian (Sep 19, 2013)

praire_guy said:


> Defiantly double check this. It will catch up with you.


It is of no concern for me but it may be wise for the OP to verify via the personal inquiries line. Tip: phone soon cause the wait times will skyrocket before you know it.


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## Eclectic12 (Oct 20, 2010)

Hopefully it stood out in the quote but it seems to the key part is:



> ... *no TFSA contribution room will accrue* for any year throughout which you are a non-resident of Canada.



The good news it that when one does qualify, the yearly amount is not pro-rated. So whether one qualifies on Jan 10th or Dec 10th of any given year, the full yearly allocation (i.e. $5.5K) is granted.


Also - for some reason a lot of people miss that TFSA withdrawals can't be re-contributed until the following year. So make sure one fully understands the rule and have a tracking system to stay on top of what TFSA contribution room is available to you (no more difficult than balancing a cheque book or reconciling a credit card statement).


Cheers


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