Leaving Canada And TFSA Contributions

by Tax Guy - Burlington Accountant on December 29, 2009 Print This Post Print This Post

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.

About The Tax Guy...

Dean Paley CGA CFP is a Burlington accountant and financial planner who services individuals and business owners locally, nationally and internationally. Dean has appeared in the National Post, Toronto Star and Metro News.

To find out more, visit Dean's website Dean Paley CGA CFP or connect via Twitter @DeanPaleyCGACFP.

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