Long time reader here, I enjoy the posts!! Keep up the good work Hub Leaders! I listened to a very interesting program this morning regarding TFSA's and how they are being utilized. A taxation ombudsmen was interviewed and was saying that CRA has been aware for quite some time that people were over contributing to their TFSA's as the monthly penalties are only 1%...............or so we all thought. Legislation was introduced in 2009 that allows CRA to apply the anti avoidance measures as outlined in the income tax act to TFSA's. Fortunatley for most, CRA hasn't had time to investigate all over contributions, but they are continually working on it, and are working towards cleaning this situation up completely due to the number of $$$$ involved. I thought the info might be useful as many here (myself included) seem to be using our TFSA's to the maximum (or more) of their potential. The ombudsmen stated that a worse case scenario COULD be that your TFSA would be taxed as regular earnings depending on the severity of the misuse. He urged everyone to read into TFSA useage at the CRA website to ensure they are using them properly............Hope this info is of use!

Thanks!