TFSA Limit for 2019 Rises to $6,000

Just as expected, the TFSA contribution limit for 2019 is $6,000, up from $5,5000 in 2018. In addition to the TFSA contribution limit rising to $6,0000 for 2019, the cumulative TFSA contribution limit will be $63,500 for Canadians who has never contributed to a TFSA and who was 18 years old or order in 2009.

Under changes announced by the Canadian government in a Department of Finance news release on December 7, 2015, 2016, and each subsequent year, the annual TFSA limit is fixed at 5,000, indexed to inflation for each year after 2009, and rounded to the nearest $500, using the consumer price index provided by Statistics Canada. 

Find out how a TFSA account can maximize your income potential.

Schedule a call with AWealth for more information about TFSAs.

The TFSA contribution limit for 2013, 2014, 2016, 2017, 2018 was $5,500. The limit for 2015 was $10,000 and the limit for 2009, 2010, 2011, 2012 was $5,000. 

If you have withdraw from TFSAs, your crystalized gains and losses from withdrawals are factored in to your TFSA room. Here’s the formula: 

Unused TFSA contribution room to date + Total withdrawal made in this year + next year’s TFSA dollar limit = TFSA contribution room at the beginning of next year. 

Sources

https://www.canada.ca/en/revenue-agency/services/tax/individuals/frequently-asked-questions-individuals/adjustment-personal-income-tax-benefit-amounts.html
https://www.advisor.ca/tax/tax-news/tfsa-limit-for-2019-released/
https://www.investmentexecutive.com/news/industry-news/tfsa-annual-contribution-limit-rises-to-6000/

About AWealth 

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