Canadians will once again be able to invest more in their tax-free savings accounts in 2024, according to Finance Canada.
The ministry confirmed in a statement to PKBNEWS on Friday that TFSA contribution limits would be increased to $7,000 next year.
This is up from a $6,500 increase in 2023, and is the first time the Canada Revenue Agency has increased the amount of the contribution limit increase in consecutive years since its inception in 2009. From 2019 to 2022, the increase was capped at $6,000 per year.
The 2024 increase is the second largest ever, with a one-time $10,000 increase in contribution space in 2015 under the then Conservative government.
Subsequently, the TFSA contribution limits were calculated on a basis of $5,000 indexed to inflation, rounded to the nearest $500.
The total TFSA contribution limit for anyone born before 1991 will be $95,000 starting in 2024. This amount varies for people born after this date, as TFSAs are open to people aged 18 and over and the limits Contributions are increased each year after this date.
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Unused contribution room is also carried over from year to year. Individuals can check their personal TFSA space on their My ARC Account.
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