TFSA Contribution Limit has increased to $6000 in 2019
The Canadian Federal Government has increased the yearly Tax-Free Savings Account (TFSA) contribution limit from $5,500 to $6,000 starting in January 1st, 2019. This is a scheduled update by the Government. The actual TFSA yearly limit was set at $5,000 in 2009 when the investment was created, but is connected to inflation every year and rounded to the nearest $500. There was one exception in 2015 when the TFSA limit was increased to $10,000 for that year only. With the new increase, that means that anyone who has never contributed to a TFSA and is old enough to have had one at inception has a cumulative contribution room of $63,500 starting January 1st, 2019.
Your TFSA Contribution maximum limit can be found by going to the Canada Revenue website and clicking on “My Account”. If you have not registered for my “My Account” online, it is a good idea to do so now. Once registered for “My Account” you will be able to see all of your Tax and Benefit information.
A TFSA can be a great tax-sheltered account to hold short and long term securities investments.