With the new Liberal government coming into power, the TFSA contribution limit for 2016 has been lowered back to $5,500. The $10,000 for 2015 remains in place. Here is a summary of contribution room since TFSAs started:
2009 to 2012: $5000 each year
2013 to 2014: $5,500 each year
2015: $10,000
2016: $5,500
Total maximum TFSA contribution room (including 2016): $46,500
If you did not contribute the full annual amount in previous years or if you made a withdrawal from your account in a previous calendar year, you will have additional contribution room that you can use.
Your TFSA can be a great compliment to your RRSP to help save for retirement or for other long term investment goals. A TFSA can also be used for short term savings goals such as establishing an emergency fund, a vacation fund, or home renovation. Interest, dividends and growth on your TFSA investment is sheltered from future taxation.
Contact us if you wish to add to or open a TFSA.