The most costly TFSA blunder many Canadians make

With the yearly contribution limit recently increased to $5,500 and the benefit of tax-free withdrawals, Tax Free Savings Accounts (TFSAs) are a popular way for Canadians to save. However, neglecting to follow one simple rule keeps costing Canadian savers hundreds of dollars in penalties.

What many don't realize about the tax-free withdrawals from these accounts is that withdrawals cannot be repaid until the next calendar year. This misunderstanding is resulting in Canadians unknowingly over-contributing to their savings accounts. This, in turn, resulting in penalty fees.

Click here for the full article from the Globe and Mail.