The Tax Free Account (TFSA)

Jan 15, 2019 | Jeremy Goldfarb


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The TFSA contribution limit for 2019 is $6,000, representing an increase from the prior year amount of $5,500. The chart below shows the cumulative amounts since the TFSA was brought into law back in 2009. The benefits of saving in this account are well documented, and the allowable contribution amount (for high net worth investors) is starting to add up to meaningful savings from a tax standpoint. This is also an excellent vehicle to use to encourage savers from the younger generation (provided they are of age -- check the chart to determine allowable contribution room for your children).

 

NOTE: Remember, you do not get a tax deduction for contributions to the TFSA. It should be used in conjunction with other registered options under a comprehensive tax and income planning strategy.

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Personal finance Tax