I over contributed to my TFSA

[kokzn]

I always max my TFSA allocation in one transaction at the beginning of each tax year. At the beginning of the year I was retrenched, and only started working again in June. When I reinstated my debit orders for RA and other investments, I accidentally selected a TFSA account instead of just a normal unit trust.

I only realised my mistake this morning, just doing a routine check on my investments after the Steinhoff saga.

I already cancelled the debit order. What are penalties for over contributing? I am over by about R4000.
Can this be allocated to the next tax year?

 

[backstreetboy]

I always max my TFSA allocation in one transaction at the beginning of each tax year. At the beginning of the year I was retrenched, and only started working again in June. When I reinstated my debit orders for RA and other investments, I accidentally selected a TFSA account instead of just a normal unit trust.

I only realised my mistake this morning, just doing a routine check on my investments after the Steinhoff saga.

I already cancelled the debit order. What are penalties for over contributing? I am over by about R4000.
Can this be allocated to the next tax year?

If a person exceeds the limits, there is a penalty of 40% of the excess amount. Example: Taxpayer X invests R35 000 – exceeded the annual limit by R2000, 40% of R2000 = R 800 must be paid to SARS.

Basically bend over and make your knees touch your elbows.

 

[kokzn]

Basically bend over and make your knees touch your elbows.

 

[backstreetboy]

Name and shame. They should have a hard limit in place...

 

[supersunbird]

I think one gets taxed 40% of the over contribution.

 

[kokzn]

Name and shame. They should have a hard limit in place...

Not their fault honestly.
I started a new TFSA account this year with Absa Stock brokers, but the error occurred on my older TFSA with Sygnia, which had R0 contribution for this tax year.

Only if Treasurery created a central database off all TFSA which all providers could check against to implement the hard limit.

 

[silkenphoenixx]

Name and shame. They should have a hard limit in place...

Most individual TFSAs that I know have a "hard" limit, but as with this case if it was with two different providers, nothing they could do.
I'd be hesitant about any central SARS database.

40% of R4000 is about R1600. Sorry man, school fees.

 

[XPD]

is the limit per calendar year or tax year?

 

[Scooby_Doo]

is the limit per calendar year or tax year?

Tax year.