TFSA Limits to Change This Year

Under proposed legislation, starting January 1, 2016, the annual TFSA dollar limit for 2016 will decrease from $10,000 to $5,500. As presented by the Federal Finance Minister, the TFSA annual limit will be indexed to inflation and rounded to the nearest $500.

According to the CRA, Canadians will accumulate TFSA contribution “room” for each year even if a TFSA is not yet opened.

The annual TFSA dollar limits for:

So if no contribution was made, there would be $41,000 worth of contribution “room” to the end of 2015. And someone opening an account in February of 2016 would be able to contribute $46,500.

Investment income earned within the TFSA will not affect TFSA contributions for the current or future years.

For more information, visit: www.cra-arc.gc.ca/tx/ndvdls/tpcs/tfsa-celi/cntrbtn-eng.html

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Randy Ramadhin

Randy Ramadhin

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CENTURY 21 People's Choice Realty Inc., Brokerage*
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