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TFSA Limit for 2024 Increased to $ 7,000?
November 24, 2023
3:48 pm
dougjp
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The main accomplishment of almost all organized protests is to
annoy people who are not in them.

November 24, 2023
7:11 pm
Dean
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.
Good luck finding the confirmation on the DoFC website (https://www.canada.ca/en/department-finance.html), but it will probably show up sometime early next month.

    Dean

sf-cool " Live Long, Healthy ... And Prosper! " sf-cool

November 25, 2023
12:11 am
cgouimet
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dougjp said
Global News is reporting this today:

https://globalnews.ca/news/10113516/tfsa-contribution-room-2024/  

Yep. The CRA formerly confirmed it on Nov 24.

Hwever, unless the TFSA law/regulation were to be changed, $7000 was a certaintly as soon as the April Year-over-Year inflation was known as that monthly number would have had to be 0% or less every month May to September for the TFSA limit to remain at $6500.

CGO
November 25, 2023
2:10 am
RetirEd
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"Tasty, Winslow, Tasty."

(from the character "Swan" in Brian DiPalma's classic, THE PHANTOM OF THE PARADISE."

RetirEd

November 25, 2023
7:37 am
cgouimet
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cgouimet said

Yep. The CRA formerly confirmed it on Nov 24.

Hwever, unless the TFSA law/regulation were to be changed, $7000 was a certaintly as soon as the April Year-over-Year inflation was known as that monthly number would have had to be 0% or less every month May to September for the TFSA limit to remain at $6500.  

Those who wish for $7500 in 2025 need to start wishing for that CRA Inflation Ave Oct 2023 to Sep 2024 to be => 4.70% sf-winksf-wink

And, if the Liberals had left the contribution at $10k when they got elected, with indexing we'd be at $13k in 2024 ...

If the Liberals had left the contribution at $10k when they got elected, with indexing we'd be at $13k in 2024 ...

CGO
November 25, 2023
12:49 pm
canadian.100
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cgouimet said

Those who wish for $7500 in 2025 need to start wishing for that CRA Inflation Ave Oct 2023 to Sep 2024 to be => 4.70% sf-winksf-wink
And, if the Liberals had left the contribution at $10k when they got elected, with indexing we'd be at $13k in 2024 ...
If the Liberals had left the contribution at $10k when they got elected, with indexing we'd be at $13k in 2024 ...  

Even with all that, I am sure many people have very large TFSAs - beyond CDIC limits.

November 25, 2023
1:07 pm
Norman1
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cgouimet said

And, if the Liberals had left the contribution at $10k when they got elected, with indexing we'd be at $13k in 2024 ...

Not true.

The amendments to the Income Tax Act that gave the $10,000 TFSA annual dollar limit also removed the indexing. The three versions of the definition of "TFSA dollar limit" are in this previous post:

This was the definition in the Income Tax Act before the TFSA limit increase amendment:

“TFSA dollar limit” for a calendar year means,

(a) for 2009, $5,000; and

(b) for each year after 2009, the amount (rounded to the nearest multiple of $500, or if that amount is equidistant from two such consecutive multiples, to the higher multiple) that is equal to $5,000 adjusted for each year after 2009 in the manner set out in section 117.1.

This is the current definition after the TFSA limit increase amendment:

“TFSA dollar limit” for a calendar year means,

(a) for 2009 to 2012, $5,000;

(b) for 2013 and 2014, $5,500; and

(c) for each year after 2014, $10,000.

This will be the definition after the proposed amendment in the Notice of Ways and Means Motion:

“TFSA dollar limit” for a calendar year means,

(a) for 2009 to 2012, $5,000;

(b) for 2013 and 2014, $5,500;

(c) for 2015, $10,000; and

(d) for each year after 2015, the amount (rounded to the nearest multiple of $500, or if that amount is equidistant from two such consecutive multiples, to the higher multiple) that is equal to $5,000 adjusted for each year after 2009 in the manner set out in section 117.1.

January 2, 2024
12:36 pm
victor6433
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If I withdrew 103K including the interest from TFSA I made total to a saving account in September 2023... would my TFSA room be at 110K with the 7k increase or back to 95K.. Would I have to start over?

January 2, 2024
2:04 pm
smayer97
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$110K.

Your TFSA limit is always the higher of the accumulated amount you withdraw the year before vs the cumulative limit set by the government for that year

(based on the years you qualify...in other words, if you are a youngen, and not just at heart, you may not qualify for all the years 😉 )

January 2, 2024
2:40 pm
lifeonanisland
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smayer97 said
$110K.

Your TFSA limit is always the higher of the accumulated amount you withdraw the year before vs the cumulative limit set by the government for that year

(based on the years you qualify...in other words, if you are a youngen, and not just at heart, you may not qualify for all the years 😉 )  

Agreed, but perhaps a little overly complicated? The amount you withdraw from your TFSA in any given year is the amount you're allowed to contribute in the following year, plus the allowable amount for the following year. (103K + 7K = 110K)

January 2, 2024
2:59 pm
victor6433
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lifeonanisland said

Agreed, but perhaps a little overly complicated? The amount you withdraw from your TFSA in any given year is the amount you're allowed to contribute in the following year, plus the allowable amount for the following year. (103K + 7K = 110K)  

So it's safe to say I'm good for 110k this year.. I just don't want to get dinged the 1% over..

January 2, 2024
4:12 pm
Bill
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Actually the TFSA contribution limit on Jan 1 is the total of amounts taken out of TFSA in all previous years that have not yet been recontributed, PLUS the current year's amount ($7K in 2024).

Of course, add also any unused contribution room from previous years too.

January 2, 2024
4:46 pm
4n2t0
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victor6433 said

So it's safe to say I'm good for 110k this year.. I just don't want to get dinged the 1% over..  

Yes. You withdrew the 103K in 2023 which can be recontributed in 2024 + the new yearly allowance, which is 7K this year = 110K without any dinging, lol.

Also, never trust the CRA contribution limit number, especially before May of the following year as most financial institution will not submit contributions/withdrawals until tax time and the CRA doesn't get updated immediately. Ultimately, we are responsible for keeping track of our own limits.

January 3, 2024
7:26 am
victor6433
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Thank you 4n2t.. Just the bank confused me.. My Cra shows 100K and change. The bank told its 95K. I know I withdrew 103K back in Sept.. So all is well now.. I went with the 100K at 6.05% for 18 months at WFCU.. This promotion expires on the 10th and the savings account 5.69% expires on the 15th...Screenshot_20240103-103013_Chrome.jpg

January 4, 2024
5:18 am
RetirEd
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The increase to $7K is now in place. I added my seven large yesterday.

RetirEd

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