Happy New Year! We wish you a happy, healthy, and prosperous 2022. The past couple years have certainly been challenging and we have adapted to new ways of living, learning, and, working. As Thomas Jefferson said: “I like the dreams of the future better than the history of the past.” This new year undoubtedly brings new possibilities and hope.
The start of the new year also brings an increase to the cumulative TFSA contribution room. This year’s TFSA contribution limit is $6,000 bringing the total cumulative TFSA contribution room since 2009 to $81,500. Below is a chart that outlines the previous years’ contribution room:
| Year | TFSA Contribution Room |
| 2009-2012 | $5,000 |
| 2013-2014 | $5,500 |
| 2015 | $10,000 |
| 2016-2018 | $5,500 |
| 2019-2022 | $6,000 |
You can calculate your total cumulative TFSA contribution room by adding the annual dollar limits starting from 2009 or the year you turned 18, whichever came second. Your annual contribution limit consists of the TFSA dollar limit of the current year, any unused TFSA contribution room from previous years, and any withdrawals made from the TFSA in the previous year.
TFSAs are extremely beneficial as they allow our savings to be invested, grow, and be withdrawn tax free. I have previously written a couple blog posts that go into more depth on the benefits Tax Free Savings accounts have to offer. If you would like to read them, please feel free to check them out: TFSA Part 1 and TFSA Part 2.
The earlier you contribute to your TFSA and invest in great dividend paying companies, the more time it has to compound and grow. I highly encourage you to take advantage of TFSAs and make your contributions as soon as possible. If you are not able to contribute the full annual contribution amount now, consider setting up a Pre-Authorized Contribution where funds are automatically contributed monthly from your bank account in smaller increments.
Please don’t hesitate to give us a call if you have any questions. If you have family and friends that would like to open a TFSA or can benefit from our services, please do not hesitate to give them our contact information.
“How will you replace your current income in retirement?”™ – Jim Seyers