A number of visitors to Canadian Tax Resource write me with their questions. I do respond to a few questions here and there to help me understand what people are thinking about.
Reader Question – Leaving Canada And TFSA Contributions
If I contribute $5,000 to my TFSA in January 2010 and then leave the country in March 2010 to reside outside of Canada for the remainder to 2010, will I face any penalties? Is it ok for me to make a full contribution at the start of the year even if I will not be living in Canada for the entire year?
The only requirements are that you be 18 years old a resident of Canada at the time of the contribution. As long as you contribute before you become a non-resident, you can contribute the full $5,000.