I know this is off topic but I think it may be relavent to some of us as we decide to buy more shares and want to pay less tax. The TFSA if I read it correctly says any overcontribution in a given year will be taxed 1% a month until you either remove the over contribution or Jan 1st of the next year hits and you have $5000 of more room. My question to some of you financial guys/gals. If I overcontribute now by say $5000 because I want to get next years contributions in early. Will I only be taxed the 1% a month(1%*5000 = $50/month) Therefore $250 in penalty to have and extra $5000 in my TFSA now instead of January 2010 or will I be taxed on the profits made with the overcontribution when I sell. Not suggesting this to anyone just thinking out loud and had to ask the question. Kind regards, Corndog