CRA has announced an increase in Tax Free Savings Account (TFSA) from $6,000 per year to $6,500 for 2024. The $500 increase is a reflection of the current inflationary environment of rising commodity prices, geopolitical tensions, red hot gas prices, and supply chain disruptions which have all contributed to inflation.
The TFSA is an extremely flexible registered account, the benefits of which can be leveraged to create massive wealth over the long-term. Any withdrawals from the TFSA in the form of capital gains, interest, and even dividends are exempt from CRA taxes, making it the most convenient account to invest within.
This new limit means that a taxpayer who has never contributed to a TFSA and has been eligible for one since its inception will have a cumulative contribution room of $88,000.
Reach out to our team today to make sure you and your loved ones are utilizing the new limit to its full potential!
