The Tax-Free Savings Account (TFSA) contribution limit will increase in 2024 to $7,000 (from$6,500)
A Canadian taxpayer who has never contributed to a TFSA and has been eligible for one since its inception will have a cumulative contribution room of $95,000. The TFSA can save Canadians (non-US citizens) a considerable amount of taxes over a lifetime since money in the account grows and pays out tax free.
A further advantage of designating either a successor holder or beneficiary is that the assets in the TFSA can flow directly to the designated successor holder or beneficiary without going through the estate. Therefore, significant further potential savings on probate fees may be provided.
Appreciating that everyone’s situation is unique, as well as the complexities involved in this and similar programs, professional tax advice is recommended.
For more information please call your CommonWealth Team of Financial Advisors.
