You can now make your Tax-Free Savings Account (TFSA) contribution for 2020 (up to $6,000).

If you haven’t opened your TFSA yet, you can also make your 2009-2019 contributions, up to $5,000 per year for 2009-2012, up to $5,500 per year for 2013 and 2014, up to $10,000 for 2015, up to $5,500 per year for 2016-2018 and up to $6,000 for 2019, for a total contribution (including 2020) of $69,500.

Introduced in 2009, the TFSA enables you to invest your contributions in a wide range of investments, and earn tax-free interest, dividends and capital gains on those investments. This can result in greater growth compared to a regular taxable account. You can also make tax-free withdrawals any time, for any reason, and any amount you withdraw is added back to your available contribution room the following year.

A TFSA can also be a great way for you to reduce your family’s overall tax bill. Your spouse and any adult children who have reached the age of majority (in the province/territory where they live) can each contribute up to $6,000 to their own TFSAs in 2020, even if they don’t have any earned income. Contribution room automatically accumulates every year since 2009 for Canadian residents aged 18+. If your family members have not yet opened up a TFSA, we can help advise how much contribution room they have available.

To make your TFSA contribution, or if you have any questions, please contact us. We would also be pleased to assist your family members with their TFSA contributions.

Sincerely,

Thomas de Mello