For every individual who is 18 years or older, there is an annual limit to contribution to a TFSA account. This amount is set at $6,000 for the year 2019. These amounts varied in the previous years and have been set at $6,000, as of 2019. The unused contribution room that you might have in one year is directly carried forward and added to the contribution limit that you have for your TFSA in the following year. If you happen to make any withdrawals in a particular calendar year, additional room for contribution will be created in the following year.
A person is not eligible to contribute or even open a TFSA account until he/she is of 18 years of age, while certain territories and provinces have set this age limit to 19 years. In those jurisdictions, a person of 18 years age, who would have been otherwise eligible can accumulate the entire amount for annual contribution for that year and carry the same forward to the following year. If is important to note that the contribution limit for TFSA accounts is not prorated for an individual on the years:
- He/she becomes 18 years of age
- Dies, or
- Attains citizenship in Canada or attains citizenship on any other country other than Canada
Apart from these legalities, other tenets decide factors affecting contribution in a TFSA account, such as over contribution and the likes. In order to know everything in details regarding a TFSA account, it is ideal to hire a professional. With many years of handling and securing profitable TFSA accounts for our many clients, we at Best Capital Bonds are the best choice that you can hire. Contact us right away to clear any doubts pertaining to TFSA account and to avail our exemplary services in the field.