What happens if you contribute more than your TFSA limit in a year?

What happens if you contribute more than your TFSA limit in a year?

• A. You must withdraw the excess within 30 days or face penalties.
• B. You incur a flat annual penalty of 2%.
• C. You incur an excess contribution penalty of 1% per month on the excess amount.
• D. There is no penalty for excess contributions.

Answer: (C)