Take maximum advantage of a TFSA
The Tax-Free Savings Account contribution limit for 2020 is $6,000.
Educators Financial Group Financial Advisors have long recommended Tax-Free Savings Accounts (TFSAs) to education members to save for your financial dreams and goals.
So the Federal Government’s announcement in November 2019 is good news: the TFSA contribution limit for 2020 is $6,000, matching the amount set for 2019. This increase reflects that the contribution limit is indexed to inflation, and rounded to the nearest $500, using the consumer price index provided by Statistics Canada.
Don’t have a TFSA? Educators has the information you need.
There are several advantages to TFSAs, including:
- Interest on investments held inside a TFSA is not taxed (so you save faster)
- Funds can be withdrawn without penalty and replaced the following year
- There’s no impact to other benefits in retirement, such as your OTPP or Old Age Security benefits
At Educators Financial Group, we can help with all your saving and investment questions.
If you’ve never contributed to a TFSA and have been eligible to do so since it was introduced in 2009, the total contribution room available to you in 2020 is $69,500. The annual TFSA limits for past years have been: 2019: $6,000; 2016 to 2018: $5,500; 2015: $10,000; 2013 to 2014: $5,500; and 2009 to 2012: $5,000.