Philotimo Wealth Management

CRA announces TFSA limit for 2023

Click the link above to read the full article. The article was published on November 14, 2022 and written by Rudy Mezzetta at Investment Executive.

The Tax-Free Savings Account Contribution limit for 2023 is $6,500, up from $6,000 in 2022. The limit has been $6,000 per year since 2019. The rapid rise of inflation in 2022, has forced an increase.

With today’s TFSA limit announcement, the total contribution room available in 2023 for someone who has never contributed and has been eligible for the TFSA since its introduction in 2009 is $88,000.

Curious about your contribution room? Reach out to us directly through email or phone and we can help calculate it. You can also check your myCRA account online to double check. You want to be sure that you don't overcontribute as you will be penalized.

The formula to determine your contribution room at the beginning of the next year is:

Unused TFSA contribution room to date + total withdrawal made in this year + next year’s TFSA dollar limit = TFSA contribution room at the beginning of next year

You are eligible to open, start contributing and/or start accumulating room in a TFSA the year you turn 18 years old (assuming you have a valid Social Insurance Number). If you were 18 in 2009 you are eligible for the full amount of room ($88,000 as noted above). Find the chart below for the annual contribution limits dating back to 2009.

The article also reviews the federal tax bracket threshold changes for 2023 as well. Inquire with us to discuss your tax bracket and planning in more detail.

The article linked and mentioned above was published on November 14, 2022 and written by written by Rudy Mezzetta at Investment Executive. Check out Rudy's articles and profile here. Visit Investment Executive to see more great investment articles here.

This article was prepared by CJ Stevens and Jerry Kallitsis who are both mutual fund representatives with Investia Financial Services Inc. This is not an official publication of Investia Financial Services Inc. The views expressed in this article are those of the author alone, and are not necessarily those of Investia Financial Services Inc. The content is for informational purposes only, you should not construe any such information as legal, tax, investment, financial or other advice. All content on this site is information of a general nature and does not address the circumstances of any particular individual or entity.