01/10/2020
It's a new year, and a new opportunity to contribute to your TFSA.
Here’s a few things you’ll need to know for 2020.
A TFSA allows you to set money aside in eligible investments and watch those savings grow tax-free throughout your lifetime. Interest, dividends, and capital gains earned in a TFSA are tax-free for life.
• Annual TFSA Contribution Limit for 2020
Canada Revenue Agency has announced that the annual contribution limit for 2020 is $6,000.
• Checking Your Annual Contribution Limit
Your TFSA contribution limit may be different from the annual limit if you have available contribution room from previous years or if you withdrew from your TFSA in the past.
• If you have never opened a Tax-free Savings Account you have unused room from 2009 – 2020 of $69,500.
Through our experience, we have noticed clients have open a TFSA with their banks and the money is just sitting in a minimal interest account.
If you would like we can review this with you and explore further investment options.
To check your contribution limit, visit My Account or MyCRA on the CRA website.
• What Happens If You Withdraw Money from Your TFSA?
Any time you withdraw money from your TFSA, the full amount can be added back to your account beginning on January 1 in the next calendar year.
Is it better to invest in RRSP or TFSA?
If you would like to discuss this further to see which option is better suited for you
Please feel free to give me a call or email me any questions you may have.
