New Year, New Beginning, New Contribution Amount!
Hear are a few points for 2020 TFSA contribution!
Annual TFSA Contribution Limit for 2020
Canada Revenue Agency has announced that the annual contribution limit for 2020 is $6,000.
Checking Your Annual Contribution Limit
Your TFSA contribution limit may be different from the annual limit if you have available contribution room from previous years or if you withdrew from your TFSA in the past.
To check your contribution limit, visit My Account or MyCRA on the CRA website. It’s a good idea to keep your own record of your contributions and withdrawals made in the previous year because these may not be reflected in your current-year TFSA contribution room until after the end of February. CRA charges a 1% monthly penalty on contributions over your limit.
What Happens If You Withdraw Money From Your TFSA
Any time you withdraw money from your TFSA, the full amount can be added back to your account beginning on January 1 in the next calendar year. (For USD withdrawals, the CAD equivalent is added back to your available contribution room in the next calendar year.)
TFSA rules are provided by the CRA, and may change from year to year, so visit the CRA website to ensure you’re aware of any changes, or speak to a professional tax advisor for more information.
If you wish to make your 2020 TFSA contribution reach out to us today.