CRA Tax Announcement: New TFSA Limit for 2021 Is $6,000

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Corporate Income Tax Ottawa ON

The Tax-Free Savings Account (TFSA) contribution limit for 2021 is $6,000. For the third time in as many years, Canada’s famous investment vehicle’s annual dollar limit did not change. The Canada Revenue Agency (CRA) formally announced the new limit on November 20, 2020.

Canadians who did open or who haven’t contributed since 2009 but are eligible to do so will have a total contribution room of $75,500. The CRA indexes the annual TFSA limit to inflation and rounds it to the nearest $500. For next year, 1.0% is the indexation increase.

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Original Article Source Credits:   The Motley Fool , https://www.fool.ca/

Article Written By:  Christopher Liew, CFA

Original Article Posted on:  December 1, 2020

Link to Original Article:  https://www.fool.ca/2020/12/01/cra-tax-announcement-new-tfsa-limit-for-2021-is-6000/

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