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New 2019 TFSA contribution limit

Table of Contents
How much can I contribute? How much difference does this make? What if I سԹ ’ve never contributed before? What if I سԹ ’ve made a withdrawal? Is it really tax-free? What should I do next?

Taxes are one of the biggest barriers to building your wealth. We سԹ ’re here to share good news because your tax-free savings account (TFSA) just got a bit more generous. Here سԹ ’s the latest update, plus some additional helpful details:

 

How much can I contribute?

, you can contribute $6,000 per year to your TFSA. That سԹ ’s $500 more than 2018. Hopefully the feds will continue to raise the to reflect the rising cost of living and the need to increase our savings along with it.

 

How much difference does this make?

Topping up your TFSA with an extra $500 per year can make a big difference. For example, if you سԹ ’re 30 today, you could retire with $60,000 more than someone who didn سԹ ’t top-up.

 

What if I سԹ ’ve never contributed before?

If you سԹ ’ve never contributed to your TFSA before, you سԹ ’re in luck because your contribution room never expires. As of January 1, 2019, you سԹ ’ll be able to put up to $63,500 into your TFSA (if you were at least 18 years of age in 2009).

 

What if I سԹ ’ve made a withdrawal?

One of the great things about a TFSA is that, when you take money out, you get the contribution room back. So if you withdraw $1,000 this year, you سԹ ’ll be able to put that $1,000 back in the future. RRSPs don سԹ ’t have this feature. Here’s a little bit more on the RRSP vs TFSA debate.

 

Is it really tax-free?

Yes! No strings attached. When you contribute to your TFSA, you can invest your money in stocks, bonds, mutual funds, ETFs and more. Your original investment plus whatever money you make – whether it سԹ ’s interest, dividends, or capital gains – can be withdrawn and there is never any tax payable.

 

What should I do next?

سԹ automatically adapts to changes in tax rules, interest rates and the economy. Plus, you have access to free, personalized advice from our salaried experts. If you want to discuss how to make the most of the new TFSA limit, schedule a free chat today.

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