TFSA 2024 Annual Limit: $7,000.
Cumulative Contribution Room: If you’ve never contributed to a TFSA and have been eligible since its introduction in 2009, your total contribution room as of 2024 is $95,000.
Eligibility: You must be at least 18 years old and a Canadian resident with a valid SIN to contribute.
Key Rules for Withdrawals
Withdrawals Are Tax-Free: Funds can be taken out at any time without tax consequences.
Room Replenishment: Any amount withdrawn is added back to your contribution room in the next calendar year. For example, a $5,000 withdrawal in 2024 allows you to recontribute this amount in 2025, in addition to the annual limit.
Deadlines to Know
No Specific Deadline for Contributions: TFSA contributions can be made at any time during the calendar year. However, planning contributions early ensures maximum growth.
Replenished Room Availability: Withdrawals made in 2024 will only open up contribution room on January 1, 2025.
Why It Matters
The TFSA is a flexible, tax-efficient tool for saving towards goals like retirement, a home purchase, or an emergency fund. Staying within contribution limits is crucial, as excess contributions are subject to penalties.
For personalized advice or to discuss how a TFSA fits into your financial strategy, feel free to reach out. Let’s make your savings work smarter!
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