Our new government has kept their promise to reduce the Tax Free Savings Account (TFSA) limit back down to $5,500 per year. But don’t worry; you aren’t losing any contribution room that has already accumulated.
Anyone opening a brand new account today would have a limit of $41,000, and that will rise by another $5,500 on January 1st, 2016. So, new accounts or maximums for previously opened accounts will be $46,500 in the New Year.
We recommend you check with your accountant or tax preparer, or log into your CRA My Account online, to ensure you don’t over contribute if you are unsure what your limit is. If the only TFSA you have ever had is with our office, then we can likely get this information for you. We like to recommend holding only one TFSA account at only one institution or bank, to ensure the limits are easily tracked and you won’t risk over-contributing in error.
Here is a friendly chart showing how the TFSA limits have evolved since they became available in 2009.