"The TFSA contribution room is made up of:
•your TFSA dollar limit ($5,000 per year plus indexation, if applicable)"
I know it was $5500 in 2013 and $5000 in 2012 but I believe official inflation is "lower" this year.
And logging in to my web account does not help because I usually max out on Jan 2 every year and I do not want to wait until they update their database 3-4 months from now to find out for sure.
Does anyone know for sure (please do not speculate) what the TFSA limit for 2014 will be?
The annual TFSA dollar limit increased to $5,500 on January 1, 2013, for the 2013 contribution year, and remains at that amount for the 2014 contribution year.
Seems like nothing but a break for the more well off I.E for those of us with money to actually use it. Apparently only about 1/3 of Canadians actually have a TFSA..
Anyway - I'm not sure how great it is for the Canadian economy or the federal budget but I'm not complaining(at least not too loudly).
I'm certainly not well off yet I have been managing to max out the TFSA every year. I think it's the middle class and lower-middle class who will benefit from this the most, because to the wealthy (eg the multi-millionaires) a measly $5500 a year is nothing.
I could see scaling back the TFSA one day - imagine in 15 years having over $100k available in contribution room - I can't see the feds / CRA allowing that much money going completely tax sheltered [would be nice though]. I don't think we will see it completely removed. Given the small % of Canadians who actually contribute to / invest in TFSAs, they are not missing out on a ton of tax revenue. It would be a PR nightmare.
You seem to forget they also took away the interest trusts and withstood that pr nightmare.I could see a lifetime contribution limit someday coming into play.
Wasn't there a capital gains exemption for a while?
Yes, there was. In 1985, the government introduced a capital gains exemption, where each Canadian did not have to pay any tax on capital gains up to a lifetime maximum of $100,000.
But the government decided to abolish the exemption as of February 22, 1994.
I'm not saying the PR nightmare will ruin them or stop them from doing it. each:
The consequences of removing the TFSA completely doesn't really benefit anyone immensely. Though, not to say it's significantly different from the the abolishments above.
Have 36k in my HISA, so our 11k is ready to go for our our 2014 contributions - and will leave 25k in our HISA, the amount needed to waive all transaction fees. Love it when a plan comes together. :biggrin:
Who else is ready to max out their respective TFSA's?
Topped up my TFSA today - 2014 contribution - $5500. Now I just need to figure out what to buy. Currently holding a few REITs (REI, NPR, HR, CUF, D), 1 Income Trusts (BPF), and TDB8150. 2 options I've considered - 1) top of a few of the REIT's to ensure I can DRIP a full share and add some to my TDB8150 OR, 2) Find a good growth stock - had intentions on purchasing ACQ a while back but with the run up in this stock I'm concerned what could happen if the market undergoes a 10-15% correction in 2014 or the auto industry starts to stall. My RRSP is reserved for index funds / ETF and I hold CDN dividend payers in my Non-Reg account. WHAT ARE YOU BUYING / CONSIDERING FOR YOUR TFSA's??
Transferred $5,500 into each of our TFSAs this a.m..........since we consider ours as part our fixed income allotment we'll probably buy 4 year GICs @ 2.42% with Equitable through TDWH tomorrow.
11k into our respective TFSA's a few minutes ago. I like REIT's in these accounts - will do some research today and probably start buying a few things during the week ahead.
I will be transferring a stock from non-reg acct. to TFSA. Minimal capital gains as stock was purchased in Q3-2013 [but expect considerable upside potential].
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