Putting more money into a TFSA than $5000?
I was looking for a short-term savings account and ING offers one at 3%. It’s their tax-free savings account. It says you can put up to $5000 a year into these accounts, tax-free. More than that and it is taxed.
Does anyone know how much additional amounts would be taxed? On revenue canada’s website it says: “If, at any time in a calendar month, there is an excess TFSA amount in your account, you will be subject to a tax of 1% of the highest such amount in that month.” Which is very confusing. Does this mean my investment will be taxed 1% per month or that the interest earned will be taxed 1% per month?
That’s really interesting.
To me the it says RC will tax the highest excess balance of the month at 1%, not the interest. That’s weird, normally taxes in Canada are on an accrual basis and the only thing that should be taxed is the interest on the excess.
I don’t think I’d be putting any excess into that account.
My TFSA Problem – TD Bank 2 of 7