Hey guys! 🤔 So, I received this weird e-mail from CRA about over contributing to my TFSA in 2023, and I’m a bit confused. Here’s the breakdown they gave me:
– TFSA limit on Jan 1, 2023: $4,500 🤔
– Minus total contributions made in 2023: $6,500 (actual limit for 2023) 😳
– TFSA contribution room on Dec 2023: -$2,000 🤨
I’m planning to call CRA for an explanation, but has anyone else experienced this? Why would my contribution limit start off $2,000 less than what the government sets for the year? Could it be an over contribution from the previous year that I wasn’t notified about?
I pulled the money out as soon as I got the e-mail, but it’s all just really confusing. Any thoughts or could there be a possible solution?
Let’s discuss and share our experiences to help each other out! 😊💡
That tells me you were already over-contributed before 2023 starts. If you started 2023 with a limit of $4,500, you’d already gone over.
Maybe you just received the notice too late, but that’s 99% likely to be the explanation.
I mean this with all due respect, but you *did* say you also over-contributed in 2022. It honestly sounds like you just need to be more careful. Few people find themselves in situations where they could have over-contributed two times.
Now that you’re caught up and the over-contributed amount is withdrawn just wait until the new year 🙂
You’re able to view the calculation for your contribution room directly on My Account, don’t bother spending 3 hours on the phone.
Based on what you wrote, you did overcontribute 2000$ in 2022, which reduces your “new” 2023 limit to 4500$.
So look at what your room was for 2022 vs what you actually contributed in 2022, if you end up with a 2000$ overcontribution, you found your answer and saved yourself listening to hold music for 3 hours.