# Over contributed to TFSA by $1, what to do?



## metta2006 (May 1, 2011)

By mistake I overcontributed to TFSA by $1. I had to put in $1 to open the account and I forgot about it and transferred $5000. Can I simply withdraw $1 and then what? Do I need to report it? TFSA is in cash not earning interest yet in a brokerage account. Thanks!


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## andrewf (Mar 1, 2010)

Don't worry, your penalty will be maximum 12 cents:

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/tfsa-celi/txtn/txtn-eng.html


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## Cal (Jun 17, 2009)

Thats kind of funny. I am sure that you weren't the only person who did that.


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## 44545 (Feb 14, 2012)

Did you already max out the other $15,000 contribution limit?


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## Eclectic12 (Oct 20, 2010)

CJOttawa said:


> Did you already max out the other $15,000 contribution limit?


Hmmm ... that's a good point.

The TFSA limit is $5K per year that one is over 18, starting in 2009 for Canadian residents.
So if the OP was 18 in 2009, he/she started with $20K of TFSA contribution room (i.e. $5K x four years).

If this is the first TFSA as well as the only TFSA contributions, the $5001 will not be an over-contribution.

On the other hand, if the TFSA contribution room has been used up each year from 2009 through 2011 (i.e. $15K used of the $20K granted), then it will be an over-contribution.


Cheers


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