CRA Online Access
Posted 06 Jun 2014 by Melissa Allan
We would highly recommend registering for an account under your individual Social Insurance Number with CRA’s online services. Registering for this account will allow you to login at anytime to track both your RRSP and TFSA contribution limits in addition to other features such as viewing your tax returns, refunds, carry forward amounts, child tax benefits, etc.
It can be particularly helpful to monitor your Tax-Free Savings Account limits. As many of you know, Tax-Free Savings Accounts were established in 2009 with an annual contribution limit of $5,000. This limit was increased in 2013 to $5,500 annually and the maximum allowable contribution into a TFSA today would be $25,500 (including carry forward amounts). As of January 1st, 2014 a new $5,500 contribution will become available.
We try to monitor your contributions here but it can get complicated if you have another TFSA elsewhere or if you’re redeeming funds out of your TFSA. When you redeem from your TFSA, you have to wait until the next calendar year before the amount withdrawn is made available to re-contribute again.
Similar to RRSP’s, If at any time in the year, you contribute more than your allowable TFSA contribution room, you will be considered to be “over-contributing” and you will be subject to a tax equal to 1% of the highest excess TFSA amount in the month, for each month you are in an excess contribution position. I think it’s safe to say that no one wants to pay penalties to CRA for this so registering for online access can certainly benefit you and us when we meet to do your annual top up contributions.
In order to register you will need to have your tax return from last year as you will need to enter information from this return to authenticate yourself. Registering is an easy step-by-step process on the CRA’s secure website. Below is a link to get registered. If you have any questions or if we can help you register, please let us know!