Inflation gives a boost to 2023 TFSA contribution limit
BNN Bloomberg
As a small consolation to the sky-high cost of living, the federal government is boosting the 2023 tax-free savings account contribution limit by an additional $500.
That means the total amount anyone over 18 years old can contribute to their TFSA will be expanded by $6,500, starting Jan. 1. In previous years the contribution limit was expanded by $6,000. The $500 increase is the result of a formula to index annual limits to inflation in $500 increments.
It’s important to note that the limit only applies to TFSA holders who have contributed the maximum amount in previous years. In other words, unused contribution space accumulates over time and can be carried forward to future years. According to the latest estimate from the Canada Revenue Agency (CRA), only 10 per cent of TFSA holders contribute their total limits. For the vast majority, annual limits are not an issue.
