TFSA contribution limit increases in 2024 - KPMG Canada (2024)

FAQs

TFSA contribution limit increases in 2024 - KPMG Canada? ›

The Tax-Free Savings Account (TFSA) contribution limit will increase to $7,000 (from $6,500) for 2024. 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 $95,000.

The annual TFSA dollar limit for 2024 is $7,000. The annual dollar limit is indexed to inflation.

In 2025, it will be $141,000 if no further changes are announced. In 2015, Tax-Free Savings Accounts (TFSA) have a new annual contribution limit of $10,000 per year, as confirmed by the Canada Revenue Agency. Up from $5,500, it's now easier than ever to answer the questionWhen is the right time to contribute to a TFSA?

It also means that starting on January 1, 2024, eligible Canadians will now have a cumulative lifetime TFSA contribution limit of $95,000 (see “What is the lifetime contribution limit for TFSA?” below for examples and charts).

The TFSA contribution limit for 2024 is $7,000. The TFSA contribution limit may increase from year over year because it's adjusted to reflect changes in inflation.

Highlights of changes for 2024. The contribution limit for employees who participate in 401(k), 403(b), and most 457 plans, as well as the federal government's Thrift Savings Plan is increased to $23,000, up from $22,500. The limit on annual contributions to an IRA increased to $7,000, up from $6,500.

For 2024, the limit is $7,000.

The RRSP contribution limit set by the Canadian government.

This limit changes annually. For 2024, the maximum any Canadian can contribute to their RRSP is $31,560 (up from $30,780 in 2023). Below, you will find the contribution limits for each of the past 10 years.

Effective January 1, 2024, the registered plan dollar limits will increase as follows: Defined Contribution Pension Plan (DCPP) – $32,490.

Can I put 50k in my TFSA? ›

Your TFSA lifetime contribution limit is $95,000. Your ongoing contribution amount. There is new contribution room every year. For 2024, you can contribute up to $7000 plus any unused contribution room from previous years.

Unlike an RRSP where contributions are not permitted after Dec 31 of the year you turn 71, you can keep contributing to a TFSA past age 71. TFSAs don't require you to have earned income to be eligible to contribute; RRSPs do.

The RRSP, RESP, and other investment options can be backups after you max out your annual TFSA limits.

If you're lucky enough to have the means, it's actually a stellar idea to max out your contributions to both an RRSP and a TFSA. Why not get the most out of tax-advantaged accounts before stuffing money into accounts that aren't tax-advantaged? Otherwise, you're effectively turning down free government money.

The RRSP contribution limit set by the Canadian government.

This limit changes annually. For 2024, the maximum any Canadian can contribute to their RRSP is $31,560 (up from $30,780 in 2023). Below, you will find the contribution limits for each of the past 10 years.

If you've always contributed the maximum amount into your TFSA, the most you can put in is $7,000 for 2024. But if you never contributed before and turned 18 in 2009 or earlier, you may contribute up to $95,000.