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TFSA Contribution Changes (again) 2016

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.


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