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TFSA contribution for 2022
September 2, 2021
3:44 am
Loonie
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Considering recent high inflation rates, does anyone know if we are yet in the running for a contribution increase in 2022?

September 2, 2021
8:35 am
Bill
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According to the link below "For the 2021 TFSA limit, the indexation factor is 1.0%. As such, when we calculate the indexed TFSA limit for 2021 (i.e. $5,958 x 1.0%), we have $6,017.58 which is rounded down to $6,000", so to me it looks like a CPI increase of about 3.85% would get it to $6250 which would be rounded up to $6500. If my calculation is right.

https://www.savvynewcanadians.com/tfsa-annual-limit-contribution-room-penalties-2018/

September 2, 2021
9:42 am
Loonie
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Thanks. Seems iffy, then.

September 2, 2021
10:35 am
Vatox
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It will be $6000. There is no way we can make it to the next level. If we get high inflation every month for the next 12 months, we could make it for 2023, but that is unlikely. So it will be a few more years yet at $6000. Perhaps a new government might legislate changes, otherwise it’s going to be a while.

September 2, 2021
10:36 am
Dean
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Loonie said

Thanks. Seems iffy, then.  

Yes ... 'iffy' indeed ❗

Jan. 2022 will tell.

    Dean

sf-cool " Live Long And Prosper " sf-cool

September 2, 2021
11:06 am
Vatox
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We will need over almost 2.2% inflation for the next 14 months to make $6500 in 2023. That’s unlikely since we are in a recovering economy. But still possible.

EDIT: and COVID isn’t done by a long shot either.

September 2, 2021
11:09 am
Norman1
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The inflation adjustment, prescribed by Income Tax Act section 117.1, is based on the September 30 Consumer Price Index (12 months).

So, we will know when Statistics Canada releases it.

September 2, 2021
12:36 pm
Vatox
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Norman1 said
The inflation adjustment, prescribed by Income Tax Act section 117.1, is based on the September 30 Consumer Price Index (12 months).

So, we will know when Statistics Canada releases it.  

Yes, if we calculate it. We need both CPI values for August and September. The official calculation is usuallly released at the end of November or in December. But we can do it ourselves in October. I can confidently say it will be $6000 for January 2022, there is no realistic chance of getting enough inflation for the last two months. And as I said earlier we will need solid inflation numbers to be reported for the next 14 months to get enough for a raise in 2023

September 2, 2021
1:30 pm
Loonie
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Thanks.
I wouldn't expect any gov't to increase the limit arbitrarily right now. I was just wondering as I was updating my TFSA pages.

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