TFSA (Tax Free Savings Account) new annual limit jumps to $10,000

Back in the spring (Atlantic Canadians will know this as June) the Government introduced a new annual limit for TFSAs and set the number at $10,000.

The previous annual limit for 2015 was $5,500.

Now you can top up your TFSA by an additional $4,500 to bring the total for the year to $10,000.


TFSAs were introduced in 2009 and were/are a new type of savings account where the income or growth inside the account is never taxed.

You use after tax money to make deposit(s) but all growth from whatever source in your investments is not taxed.


EVERY ADULT can have one.

From 2009 to 2012 the annual Limit was $5,000 per year per person. (4 years X $5,000 = $20,000)

In 2013 they changed the limit to $5,500 per year and that lasted until this most recent announcement

(3 years X $5,500 = $16,500),

PLUS the additional $4,500 for 2015 and beyond.

As of today every qualifying person can deposit up to $41,000 in a TFSA.

For a couple that's $82,000.

If you're sitting on NON-Registered GICs, Savings Accounts or Investment Funds then you should ensure you have transferred your maximum to a TFSA.

Why create taxable income when you can have non-taxable income.

HOW DOES a TFSA differ from an RRSP?

With an RRSP you deposit with Pre-Tax Money.

You can take money out of an RRSP (if allowed) BUT the money is then TAXED.

Once any money is removed from an RRSP you CANNOT redeposit that money. Your RRSP Allowable Amount has been used and you can't get it back. If you have unused RRSP TOP UP Room then you can still make RRSP deposits but you can't reclaim any withdrawal amounts for additional RRSP deposit space.

TFSAs on the other hand are very flexible.

After making a deposit you can take withdrawals and your Deposit Room gets Replenished and you can redeposit a similar amount in the future, starting the next calendar year.


Both can be used in conjunction with one another.

The only way to really know what is the best option is to have a discussion with us. We can review your unique situation and then make a recommendation based on your facts. As everyone is different and have different savings, it is hard to generalize and say one answer fits everyone.


$4,500 in Higher TFSA Room is now available.

If you haven't maxed out your TFSA Deposit at $10,000 for 2015 OR if you haven't maxed out your $41,000 available deposit limit PER PERSON then give us a call and we can help.

#TFSA #retirement #RRSP #wealthmanagement

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