# Tangerine TFSA's



## appletrees (Mar 28, 2016)

Hello. Just opened our first TFSA with Tangerine. A little confused about transferring between options. I understand they have a tfsa account, a tfsa gic and tfsa mutual funds. I know what our current limits are based on past and current contributions. I would like to keep a diversified portfolio if possible to keep our options open (ie. would like to contribute this years max. contribution amount $ 5500 but distribute it to the various options at Tangerine).

I opened just a general tfsa with tangerine. Once it has been approved, I plan on contributing the max. contribution allowed for 2016. At that point can I direct a portion of the amount contributed in my general tfsa into a tangerine tfsa gic and another portion to a tfsa mutual fund? Does anyone know if this is possible with tangerine without opening an account of each of the various tfsa account types? Really want to keep it simple - put money into one account and transfer in and out of it. 

For example, I was thinking I would put the $5500 into my general tfsa with tangerine. Then I would transfer $3500 into the tangerine tfsa balanced growth mutual fund and the ladder the other $2000 into tangerine tfsa gic's once the initial interest promotion ends. I would reinvest the GIC's back into the tfsa GIC's upon renewal. I do not plan on touching any of this money for 30 + years. I was thinking I would continue a similar plan going forward each year to max out our TFSA's from this point on. Does this sound like a reasonable plan? Or do I risk the possibility of overcontribution by having my assets in the tfsa's at Tangerine split up? 

Just want to be sure everything remains within the tfsa and moving money around between the tfsa at Tangerine does not count as a withdrawal. Just want to put in the max yearly amt, leave it there and not have to worry about withdrawal and re-contribution rates.

Any advice. Thanks!


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## djkelly (Feb 18, 2016)

You'd have to open each type of account separately.

Tax Free Savings "Account" is a bit of a misnomer. There are many types of accounts you can have in a TFSA as you've discovered. Transferring money between them is fine. 

Be careful not to move money out to a non-TFSA account and then back in however. Even taking it out for a minute means you have to wait until next year to put it back in.


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## wendi1 (Oct 2, 2013)

That's not quite true, dj. Most people have lots of contribution room in their TFSA.

Once you take money out of TFSA account (say $100), you don't get that $100 of contribution room back until January.


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## Eclectic12 (Oct 20, 2010)

djkelly said:


> You'd have to open each type of account separately.
> 
> Tax Free Savings "Account" is a bit of a misnomer. There are many types of accounts you can have in a TFSA as you've discovered.


I suspect you are confusing vendor policy that is doing this for government rules.

One of the two I opened in 2009 allows a broad range under one account number (GICs, MFs, stocks, ETFs, bonds etc.).

The second one originally only allowed saving but about five years ago added MFs, again under one account number.


Cheers


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## Eclectic12 (Oct 20, 2010)

wendi1 said:


> .... Most people have lots of contribution room in their TFSA...


Not sure what this is about.

Hopefully it is clear that contributions made are reducing available contribution room. Some IMO complicate things by tracking total TFSA contribution room whether it has been used or not.


Returning to the transfer versus withdraw then re -contribute ... I would hope Tangerine would confirm the choice.

My co-worker says CIBC is using one account number for each asset class for the TFSA and RRSP. Unless new contributions are sent directly to the matching account number, two sets of paperwork are needed. One to transfer from say the savings account number to the MF account number, where the form identifies this as a transfer. The second set to invest in specific MFs.


As I am used to a broader range of choices, the double paperwork would annoy me.


Cheers


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## Joe Black (Aug 3, 2015)

I used to take care of my mom's TFSA's in Tangerine and she only had a savings account and GICs. The GICs were usually directed to be repaid into the savings account on maturity. She never had any issue doing this. I assume this was some sort of internal transfer from one TFSA account to another, the same as when you transfer from one bank to another but without any fee since you are going from one of their products to another.


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## Eclectic12 (Oct 20, 2010)

^^^^

This is what my co-worker described for the CIBC one ... the possible difference being there was paperwork for the transfer then paperwork to invest.


As I say ... I am more used to the paperwork being to setup the account and/or transfer without it being considered a withdrawal. Everything else I can do myself online where everything is considered to be within the umbrella of the TFSA account, similar to my RRSPs. 

I did read of people in 2010 who had over-contribution penalties due to the bank writing up the transfer as a withdrawal instead of a transfer. I'd keep good records and ask, in case there is any problem in the future (CRA won't catch up for as much as fourteen months or so).


Cheers


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## djkelly (Feb 18, 2016)

wendi1 said:


> That's not quite true, dj. Most people have lots of contribution room in their TFSA.
> 
> Once you take money out of TFSA account (say $100), you don't get that $100 of contribution room back until January.


That's literally what I said:



djkelly said:


> Be careful not to move money out to a non-TFSA account and then back in however. Even taking it out for a minute means you have to wait until next year to put it back in.


You can add funds to the account, but if you are at the limit you can't replace the funds you took out.


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