Big News for 2025: TFSA Contribution Room Set to Exceed $100,000!
Kiruban Kana
CoffeeandMortgage.ca | Top 5% in Canada | (416) 219-4820 | Vice President & Mortgage Agent Level II
Starting in 2025, Canadians will see their TFSA (Tax-Free Savings Account) contribution limit rise to $7,000, matching the limit from 2024. This increase pushes the total possible contribution room for someone who has never contributed and has been eligible since the TFSA’s introduction in 2009 to an impressive $102,000.
This adjustment is based on the federal indexation rate, which is tied to inflation, and while the official CRA announcement is pending, the contribution limit has been calculated using CPI data published in September 2024.
Why Does This Matter?
For Canadians, especially those nearing retirement or planning major purchases, a TFSA is a powerful tool for tax-free growth. Unlike RRSPs, withdrawals from a TFSA do not count as taxable income, meaning retirees can access these funds without affecting benefits like Old Age Security. Whether you're saving for a rainy day, a large purchase, or retirement, the flexibility and tax benefits of a TFSA make it a must-use financial vehicle.
Important Things to Remember:
As we head into 2025, it’s a great time to review your TFSA strategy and maximize your contributions. Whether you’re new to TFSAs or already well-established, this additional room offers even more opportunities to grow your savings tax-free!
领英推荐
Key TFSA Dollar Limits:
Take advantage of this opportunity and start planning your 2025 contributions today!
Sources: Canada Revenue Agency for official updates on TFSA limits and Insights/credit: Rudy Mezzetta, Advisor.cahttps://www.advisor.ca/industry-news/industry/two-financial-planners-receive-fp-canadas-fellow-distinction/