A TFSA is a great place to grow your investments tax-free but the rules on maximum contributions have changed for 2016. The limit has been dropped to $5,500 but, if you haven’t used your $10,000 limit from 2015, you still can.
From 2009 until 2012, the limit was $5,000 a year for each of those four years. In 2013, the limit went up to $5,500 and stayed there for 2014. In 2015, the limit was upped again to $10,000. But in 2016, the limit is to go down to $5,500 again.
All total, that means if you were over 18 years old as of 2009 and a resident in Canada, the total amount of contribution room available to you is $46,500. Going forward, the plan is to index the TFSA contribution limit to inflation and round it to the nearest $500.
I'm Kim Parlee. And that's your Money Talk Minute.