TFSA limit for 2019 released

The TFSA contribution limit for 2019 is $6,000, up from $5,500 in 2018.

With the TFSA limit at $6,000 for next year, the total room available in 2019 for someone who has never contributed and has been eligible for the TFSA since its introduction in 2009 is $63,500.

The annual TFSA dollar limit is indexed to inflation and rounded to the nearest $500. The Canada Revenue Agency’s indexation increase for 2019 is 2.2%.

For clients who have withdrawn from TFSAs, their crystallized gains and losses from withdrawals are factored in to their TFSA room. Here’s the formula:

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

Tax bracket thresholds for 2019 have also been released. The federal 33% tax bracket will begin at $210,371 in 2019, up from $205,842 in 2018. On the low end, the basic personal amount for 2019 is $12,069, up from $11,809 in 2018.

Go here for Advisor.ca’s handy summary of essential tax numbers, freshly updated for 2019.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.