# Accidently put 5k extra into TFSA last year



## Butters (Apr 20, 2012)

Last year a friend of mine put 5k extra into their TFSA
She finally got her log in info for CRA and it says "2015 room is $500" (she has not put in any money this year)
but CRA never called or mailed her anything saying she over contributed....

What will happen to the 5k over contribution in 2014
What should she do now, 
call them, or just file her taxes like normal wait and see what happens


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## OptsyEagle (Nov 29, 2009)

Most likely that is just the $500 carried forward from 2014. I doubt they even know about her 2014 contributions and withdrawals yet, to give her an accurate number. You really should be asking her. What has she put into her TFSAs? If she doesn't know this number, tell her to go find out. It's on all her statements. If there have been withdrawals, that is important as well. 

If she is going to use her TFSA, she needs to keep track of this.


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## Butters (Apr 20, 2012)

She has zero width-drawls

She had 16k room in TFSA for 2014
her dad put in 16k
She put in 5k

now she is 5k over for 2014

with $500 available for 2015 (says on website)




What will happen to the 5k over contribution in 2014
*What should she do now*, call them, or just file her taxes like normal wait and see what happens


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## OptsyEagle (Nov 29, 2009)

SheaButters said:


> She has zero width-drawls
> 
> She had 16k room in TFSA for 2014
> her dad put in 16k
> ...


1% per month until the over-contribution is fixed. It seems to me it was fixed at January 1, 2015 so I would say she owes the government 1% of $5,000 for each month between when she made the contribution and January 1, 2015, plus interest on the penalty.

What she should do, I cannot say. I doubt the interest on the penalty is very much so she could wait till they send her the bill, which they will, or she could call them and ask what to do.

Maybe others have been down this road before. Actually many others have been down this road before, so hopefully they can give you some better guidance.


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## Silverbird (Mar 5, 2013)

SheaButters said:


> She has zero width-drawls
> 
> She had 16k room in TFSA for 2014
> her dad put in 16k
> ...


File the 2014 income taxes as is. TFSA issues do not have any impact on these. TFSA issues are handled solely through the RC243 form below

Basically Opsy is right, it's 1% a month for the overcontribution until it got fixed when the 2015 contrib room was added.
here is some CRA info:
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/tfsa-celi/txtn/txtn-eng.html

The form to be filled in is RC243 and RC243 Schedule A
http://www.cra-arc.gc.ca/E/pbg/tf/rc243/rc243-14e.pdf
http://www.cra-arc.gc.ca/E/pbg/tf/rc243-sch-a/rc243-sch-a-14e.pdf

2 approaches I can think of:
1) File a rc243 and mail a cheque for the penalty
2) File an RC243 and accompanying letter asking for compassion as it was an unintentional overpayment.

I'd go with #2, since interest penalties will be small and you don't have much to lose. By coming forward before the CRA comes asking, they may give you a break, although I've heard they have been less lenient since the program is older and allegedly more well known.


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## Butters (Apr 20, 2012)

Thanks for the reply guys, luckily the 16k deposit was in september, so its not a huge penalty for her!


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