Obtainable TFSA contribution room
Canadians aged 18 and older accumulate new tax-free financial savings account (TFSA) contribution room yearly. The annual TFSA contribution restrict has modified many occasions for the reason that account was launched in 2009. As of January 1, 2025, a person born in 1991 or earlier (who was 18 years or older in 2009) who has by no means contributed to a TFSA could have as a lot as $102,000 of cumulative TFSA room.
Along with yr of start, TFSA room is impacted by a few elements. Non-residents of Canada don’t accumulate new TFSA room. And TFSA room changes are made based mostly on prior contributions and withdrawals. Whenever you contribute, your remaining TFSA room decreases. Whenever you withdraw, your remaining TFSA room will increase, however not till the next calendar yr.
TFSA contribution room calculator
Learn the way a lot you may contribute to your TFSA at the moment utilizing our calculator.
What occurs if you inherit a TFSA?
Whenever you inherit a TFSA, such as you did, Roberta, the influence of contributing the funds to your individual TFSA relies on your relationship to the deceased. When your partner dies, you may have up till December 31 of the yr following their loss of life to deposit funds from their TFSA to your individual account with out having to take up any your TFSA contribution room.
This is applicable when your partner named you as beneficiary of their TFSA, however even when they didn’t, it might nonetheless apply if you’re a beneficiary of their property.
If you happen to’re a non-spouse beneficiary of a TFSA, there’s no particular remedy for the TFSA inheritance. You would not have the flexibility so as to add it to your individual TFSA, at the least not with out utilizing your individual TFSA room.
Successor holder
In case your late husband named you as successor holder, Roberta, you might be able to take over his TFSA. Solely a partner generally is a TFSA successor holder. You probably have your individual TFSA, you should still wish to mix the accounts.
One benefit of being a successor holder is that any earnings and/or development earned after your partner’s loss of life is taken into account tax-free. In any other case, if you’re named as beneficiary, that earnings and development is taxed as atypical earnings. All the account worth can nonetheless be transferred to your individual TFSA, nevertheless, topic to the identical timeline of December 31 of the yr after loss of life.
Confirming your TFSA room
You possibly can decide your TFSA room, Roberta, by contacting the Canada Income Company (CRA). The CRA can verify your TFSA room by cellphone or utilizing CRA My Account on-line.
