Know your TFSA contribution limit
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National Bank of Canada
Plus, here are some TFSA investing ideas to consider.
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For Canadian investors and savers, it’s always some of the best news to come each year: new TFSA room that becomes available each January 1. For 2024, the TFSA contribution limit is $7,000, and for 2023, it is $6,500.
The actual TFSA yearly limit was set at $5,000 back in 2009 when the investment account was first created, but it’s indexed to inflation each year and rounded to the nearest $500 to simplify things for investors. The exception was 2015, when the TFSA limit was hiked up to $10,000 for a single year before being decreased to $5,500.
Someone who has never contributed to a TFSA and was born in 1991 or earlier could have cumulative contribution room of $95,000 as of Jan. 1, 2024.
TFSA contribution limit—2009 to 2024
| Year | TFSA Annual Limit | TFSA Cumulative Limit |
|---|---|---|
| 2009 | $5,000 | $5,000 |
| 2010 | $5,000 | $10,000 |
| 2011 | $5,000 | $15,000 |
| 2012 | $5,000 | $20,000 |
| 2013 | $5,500 | $25,500 |
| 2014 | $5,500 | $31,000 |
| 2015 | $10,000 | $41,000 |
| 2016 | $5,500 | $46,500 |
| 2017 | $5,500 | $52,000 |
| 2018 | $5,500 | $57,500 |
| 2019 | $6,000 | $63,500 |
| 2020 | $6,000 | $69,500 |
| 2021 | $6,000 | $75,500 |
| 2022 | $6,000 | $81,500 |
| 2023 | $6,500 | $88,000 |
| 2024 | $7,000 | $95,000 |
Investing ideas for your TFSA
TFSAs are not just for savings. You can also invest with your TFSA.
Stock picking
Herman VanGenderen has more than $100,000 in his TFSA. He grew his money by focusing on Canadian and foreign stocks, diversification and dividends. Here’s what you can learn from his near-perfect TFSA investing strategy. Or if you are lucky enough to buy during depressed markets like this investor (he has nearly 40% of his investments in BP stock), the subsequent gains can be significant—and tax-free.
Simple, ETF portfolio
Patti has more than $57,000 spread out across 19 holdings. Experts give her a simple, two-ETF solution to make sure she’s well diversified and making bank in the long term. Here’s another example of someone who’s just starting out with TFSAs, looking for a simple, no-fuss approach to start building wealth in the account. Or, if you’re more comfortable with risk, you could go the route of this 31-year-old Toronto police officer, who focuses on aggressive, equity index funds.
Out of the box (and not recommended)
There are some strategies that work for investors—but you shouldn’t necessarily try to recreate. For instance, this man suggests buying stocks and holding on to them forever and ever, while experts worry that he’s not diversifying enough. And this investor transfers Canadian dividend stocks “in-kind” to and from his unregistered account annually, a strategy that seems to work but doesn’t hold up upon closer.
Here are the best TFSA investments for Canada right now.
Read more about investing:
- TFSA contribution room calculator
- How much should I have in my RRSP?
- Earning, saving and spending money in Canada: A guide for new immigrants
- How might inflation impact your retirement plans?
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Try searching “when does CRA post TFSA contribution limit updates” i.e. that include previous year contributions and withrawals” and you’ll get 35 links that tell you the 2021 contribution limit is $6,000. Does anyone at Moneysense know when CRA normally updates previous year transactions? Thanks
Due to the large volume of comments we receive, we regret that we are unable to respond directly to each one. We invite you to email your question to [email protected], where it will be considered for a future response by one of our expert columnists. For personal advice, we suggest consulting with your financial institution or a qualified advisor.
Is there a life time limit on amount in a tfsa?
TFSA limits are posted or updated by March end on CRA web site.
Can I buy Indian stocks from TFSA trading account??
We invite you to email your question to [email protected], where it will be considered for a future response by one of our expert columnists. For personal advice, we suggest consulting with your financial institution or a qualified advisor.
TFSA beats RRSP in many situations. When you first start earning you may not be likely to be in a lower bracket in retirement if your career is successful. If you do well in RRSP it claws back your OAS. Tax brackets are likely to increase over the next 30 years so you save on your tax bracket today just to pay more in 30 years.