My other question is as to whether He can only build contribution room from the day He arrives back??

A sizeable inheritance is coming to him and putting some of the money in a TFSA would be great, but I am guessing this is a No Go?

Re: TFSA account and commission fees
Mike has a good point about using Questrade for cheaper costs.

However, if you have enough assets already with a brokerage, linking the accounts may give enough to qualify for cheaper commissions and waive the fees. In my case, by the time the TFSA was setup, I have enough assets by counting both my taxable and RRSP accounts that there was no TFSA fee and the $9.99 commission applied across all accounts. It’s always worthwhile to check all of the choices before making a decision.

Re: RRSP de-register fee of $75-$100 to use Home Buyers Plan
Hmm … are you sure about this? When I withdrew from my RRSP for the HBP, nothing was charged and de-registration wasn’t needed. It’s been a while so maybe this depends on the financial institution or is a recent change.

Re: … banks will impose penalties for moving TFSA money …
I guess it will depend on the bank or brokerage account that was setup. In three years, for my two TFSAs I’ve made three bank withdrawals and two brokerage withdrawals, with no fees charged. I’ve never completely emptied an account or done a transfer to another bank/brokerage – it’s always been a cash transfer.

Cheers

If I’m reading correctly, the idea is to withdraw $10K, payoff the mortgage, borrow $10K, contribute in the same year the borrowed $10K to the TFSA and use the interest as a tax writeoff.

This won’t work as CRA looks at TFSA contributions only – whether it is new or a replacement of what used to be there, it is still a contribution.
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns206-236/221/menu-eng.html

As well, there will likely be over-contribution penalties on the TFSA as withdrawals this year can’t be put back until *next* year.

What would work is to borrow to invest in eligible investments that pay dividends. The dividends could be contributed to the TFSA. This would fund part of the TFSA contributions and keep the interest for the investments tax deducible – assuming the rules are followed properly.

Cheers

For example, if you have $16,500 in your TFSA right now and no available contribution room. You withdraw all $16,500 in 2011.

In 2012, you will have $16,500 (amount withdrawn in 2011) + $5,000 (2012 contribution amount) = $21,500 of contribution amount available in 2012.

In reading websites and posts regarding the confusions of withdrawing and depositing the same amount, I finally understand about over contributions. My question however is, if I were to withdraw 15K in 2011, can I contribute back that same 15K in 2012 plus an addition 5K as we’re entitled to 20K by 2012? Or will this all be considered over contribution? Simply, do we have to wait until the next year to contribute back what we withdraw?

Many many thanks. This website is of great help!

You can give her money to put into a TFSA – this is a much better idea.

thanks,
Mark

If I was to open three separate TFSA accounts, each in a different bank, can I contribute $5000 to each, all in the same year?