TFSA Ding!

8 Jun

BAM!  I was hit with a $56 penalty for over contribution in my Tax Free Savings Account.  1% on $5600.

I had two TFSAs with ING Direct and President Choice.  I would transfer the money back and forth without realizing I couldn’t deposit the money that I had already withdrawn in that given year.  My TFSA never exceeded the $5000 limit.  But my various withdrawals and deposits made the amount over $5600 the supposedly $5000 limit.  I was choked when I found out that I wasn’t suppose to do that.  So by the end of it, I withdrew everything from both my TFSAs.

I actually LOST money on this deal as the measly interest I earned only amounted to $27.04 for 2009.  TSFA cost me more money than helping me make money!!  I have to give up $28.96!

My current TFSA is in the dumps as well… due to the recent downturn in the stock market!  I am not impressed with this new way of saving your money.  I’ve yet to see any real gains… I await for it patiently and remember not to do what I did in 2009!

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