Canadians are set to enjoy a higher contribution limit for their Tax-Free Savings Accounts (TFSA) in 2024, as confirmed by Finance Canada.
The TFSA limit is slated to rise to $7,000 next year, marking the second consecutive annual increase.
This increment follows the boost to $6,500 in 2023, making it a noteworthy development as the Canada Revenue Agency (CRA) has not consecutively raised the contribution limit since the TFSA’s inception in 2009.
In the years spanning 2019 to 2022, the annual increase was consistently capped at $6,000.
The upcoming $7,000 limit in 2024 stands as the second-largest increase in TFSA contribution limits to date, with the most significant being a one-time jump to $10,000 in 2015 under the Conservative government.
TFSA contribution limits have typically been calculated on a $5,000 base, adjusted for inflation and rounded to the nearest $500 since 2015.
Individuals born before 1991 will have a total TFSA contribution limit of $95,000 starting in 2024.
For those born after 1991, TFSA limits vary, with contributions expanding annually after turning 18.
It’s essential to note that unused contribution room carries over from year to year.
Individuals can conveniently check their personal TFSA space through their CRA MyAccount.
This increase in contribution limits provides Canadians with enhanced opportunities for tax-free savings and investment strategies.
