$7,000 Contribution Limit for your TFSA in 2024!

This marks the first time the CRA has increased the contribution limit on TFSA in back to back years. For 2024, they have increased it to $7,000 (from $6,500). This means that if you were born before 1991, your total contribution limit is $95,000 for 2024 - that is if you've never made a contribution since inception. 

You might be wondering: what is a TFSA? How does it benefit you? And who can contribute? 

A TFSA is a "Tax Free Savings Account," or I like to call it: "Tax Free Investment Account." It is a registered account that does not tax you on any of your capital gains, dividends, or interest income. 

For example: You invest $50,000 into a stock, and the stock price goes up. Your $50,000 is now worth $60,000. You sell your position, and the $10,000 you've gained is tax free! 

TFSA is one of the best investment vehicles out there, as all your income or gains earned will not be taxable. This means you get to keep 100% of your earnings. 

You are allowed to start contributing to your TFSA as long as you are:

• 18 years of age or older 
• Individual that is a resident of Canada
• Have a valid SIN 

If you're unsure about your TFSA contribution limit, you can log into your CRA (Canada Revenue Agency) online portal and check under "My Account." However, the limit amount could be outdated, as the updates are not in real time.