Blogs & Comment

Commentary on TFSA changes

Recent proposed changes to TFSAs are creating a bit of a stir in the media and blogosphere. Whats all the fuss about?
Million Dollar Journeyhas a straightforward summary of the proposed changes, whichtargetreturns on over-contributions, returns on prohibited investments, asset transfers into TFSAs, andtax room created by the above strategies.
Tim Cestnicksays Most Canadians won’t be impacted by the changes and offers 8 ways to legally exploit your TFSA.
Michael Jamespoints out that a 100% tax on returns derived from over-contributions is a good thing because it prevents people from taking aggressive risks (i.e. making over-contributions and investing them in risky securities in hopes of earning more than the 1% a month penalty on over-contributions).
Canadian Financial DIYexplains, with the help of the Financial Webringthread, just how the asset swaps took advantage of the TFSA (as the asset swapper gets to choose any price in the days trading range after the fact, he can deliberately choose a low price when stock leaves the TFSA and a high price when the stock returns)
Canadian Capitalistasks why ban asset swaps into TFSAs seems to be overkill.
Jonathan Chevreauwas onto the TFSA swap strategy way back in January.
Sachas TFSAhas grown from $5,000 to $12,000 in less than a year and without any fancy tax planning.
Preetand Four Pillarson ING Directs offer to get 2010 TFSA contributions in early (and $25 referral bonus)