This week, the CRA confirmed the 2023 TFSA contribution limit to be $6,500. The annual contribution limit has been $6,000 since 2019.
As of January 1, 2023, the lifetime TFSA contribution limit for individuals who have been at least 18 years of age and lived in Canada since 2009 is now $88,000.
The annual TFSA limit is indexed to inflation, with rounding to the nearest $500. The CRA pegged the indexation increase for 2023 at 6.3% (the 2022 indexation increase was 2.4%).
To calculate your lifetime remaining contribution limit: Current year starting TFSA contribution room + withdrawals made during this year + next year’s annual limit – contributions made this year = TFSA limit as of January 1st next year.
Auston is 50 years old and has lived in Canada his entire life. CRA confirmed his 2022 TFSA limit as $70,000. He contributed $10,000 in 2022 but also withdrew $5,000 in 2022.
Auston’s 2023 TFSA limit therefore projects to: $70,000 + $5,000 + $6,500 – $10,000 = $71,500
As always, please let us know if you have any questions or concerns about your portfolio.
Sources: The Canadian Press