The 2019 Tax Free Savings Account (TFSA) contribution limit has increased to $6,000 for this year. With the increase at $6,000 the total available room for 2019 for someone who has never contributed is $63,500.

When you contribute to your TFSA, it is important to ensure that you are not over contributing. Over contributing leads to CRA  charging a tax on the over contribution.

The formula for contribution room is as follows:

Unused TFSA contribution room year to date + Any withdrawals made from your TFSA prior to 2019  + 2019 contribution limit of $6,000 = Amount you can contribute in 2019

To be eligible for a TFSA, you must be 18 years of age or older and be a resident of Canada.

Visit Canada Revenue Agency’s website to confirm your personal unused contribution room at myCRA or you can call 1-800-267-6999 Option 6. You will need: the total income you entered on line 150 of your previous year’s return, your month and year of birth; and your social insurance number.

Any contributions that are made or withdrawn from a TFSA in the prior year may not be reflected in your available current year contribution room until after the end of February. All issuers have until the last day of February to electronically submit a TFSA record to the CRA for each individual who has a TFSA.

Contact our team to help you arrange to take advantage of the TFSA contribution room increase for 2019.