Transfers into a TFSA

Transfers into a Tax Free savings account (TFSA) of either cash or investments are also considered contributions.

Although they’re not based on your income, and you cannot claim them the same way as RRSP contributions, you still need to be aware of your maximum contribution room.

You start earning TFSA contribution room when you turn 18 as a Canadian resident, and gain additional contribution room every calendar year.

TFSA contribution room also accumulates or ‘stacks’, so if you’re unable to ‘max out’ your TFSA in any year, the extra room is not lost, but rather keeps adding up.

Here’s a table showing the TFSA contribution room. (TFSAs started in 2009)

You can easily request a transfer of cash from another Questrade account anytime by heading to the “REQUESTS” -> “Transfer Funds” page, but please keep your contribution room in mind.

Excess TFSA contributions are penalized by the CRA at 1% per month.

If you make a contribution in U.S. Dollars, the CAD-equivalent is counted against your contribution room. This is based on the exchange rate at the time of the request.

You can also request a transfer of investments into a TFSA from another Questrade account using the “REQUESTS” -> “Transfer Investments” page.

If the investments are originating from any account other than another TFSA, these also count as contributions.

The contribution amount is represented by the market value of the investment on the date of the transfer request, and you have different options as to which price is considered the “market value” depending on the type of investment.

Note: for Available prices, the closing price will reflect the day in which the funds settle, and not always the day in which the request is made.

To indicate which price you’d like Questrade to use for determining your transfer amount, you can leave a comment on the request after it has been placed.

Simply click the “Request history” tab, and click “Add comment” for the request indicating which price you’re using.

Note: The information in this blog is for educational purposes only and should not be used or construed as financial or investment advice by any individual. Information obtained from third parties is believed to be reliable, but no representations or warranty, expressed or implied, is made by Questrade, Inc., its affiliates or any other person to its accuracy.