Merry Christmas and Happy New Year to our readers! What could be a better holiday present than additional contribution room so you can earn tax free returns on your investments?
We would like to take this opportunity to remind our readers, that as of January 1, 2015, those of you that are 18* and over and a resident of Canada will receive an additional $5,500 in contribution room in your TFSA (Tax Free Savings Account)!
For those of you that were 18 prior to January 1, 2009 (when the TFSA was first introduced), your cumulative TFSA contribution limit should be $36,500 effective January 1, 2015. This is an estimate only and your individual circumstances may vary this number. Always check with the CRA to see your exact TFSA contribution room to ensure you do not pay taxes for over contributing.
At CJ Capital, we are proponents of using the TFSA as an integral part to a financial / retirement plan. However, using a TFSA may not be the right answer for everyone, which wrote about this in a previous article.
Please contact us if you would like to discuss the use of a TFSA further and the pros and cons of it.
* The age of majority is 19 in British Columbia, Newfoundland and Labrador, Nova Scotia, and New Brunswick. As a result you would need to be 19 years old before a financial institution would allow you to open a TFSA. However, your TFSA contribution room would commence when you turn 18.
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