Monday, July 9, 2018

Using TFSAs

11:30 AM


Question:

I input a value for my TFSA but for some reason it is not showing up on the asset accumulation table. Could not figure out why. Any suggestions, could I have a wrong setting somewhere?

As a follow up to my earlier question, in the file# below for some reason the TFSA balance and earnings are not showing up on the detailed accumulations table even though I input a 15k balance.

Answer:

Please set the savings plan allocation to max allowable TFSA, but the model does not direct excess cash flow to TFSA, but rather to the broader non-registered bucket. Is there something I am doing wrong?

You have to select TFSA as a source of retirement income on the Options page. I made this change to your file and now the TFSA numbers are showing in the results.

I looked at your file. For all years where you'll more than your goal, the excess is from non-registered investment income. So since the excess is not spent, there is no money to go to the TFSA.

The option to direct contributions in the TFSA is before retirement. After retirement, if there is an excess of income, it will be deposited in the TFSA if there is room available. If the excess is from non-registered investment income, the after-tax value stays invested in the non-registered account.

1 comments:

  1. Upon death of the first spouse, a TFSA can be transferred to the surviving, designated beneficiary spouse. However, my results show my TFSA collapsing and going into my spouse non-registered plan. Am I missing something/input field to have this work as a transfer?

    ReplyDelete

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