TFSA, RRSP, and FHSA Contributions in 2024
2 minute read • January 16, 2024
2 minute read • January 16, 2024
Before making any contributions, confirming your personal contribution limits is crucial. You can find these on your Canada Revenue Agency (CRA) Notice of Assessment or by accessing your CRA account online.
Remember, over-contributing can lead to penalties of up to 1% per month, so it’s best to be cautious!
The 2024 annual TFSA contribution limit has increased to $7,000. If you’re new to TFSAs and meet the eligibility criteria, your cumulative total contribution limit is now $95,000.
Withdrawals made in 2023 or earlier? No worries, you can recontribute that amount starting January 1, 2024. Plus, any unused carry-forward room can be contributed at any time.
TFSA Contribution Limits Since Inception:
Total Since Inception: $95,000
The deadline for 2023 RRSP contributions is February 29, 2024. The maximum limit for 2024 is $31,560, or 18% of your annual earned income. Remember, you can contribute more if you have unused contribution room from previous years.
Exciting news for first-time homebuyers! The FHSA is a new program, based on eligibility criteria, designed to help you save effectively for your first home. The annual contribution limit is $8,000, with a lifetime maximum of $40,000. Contributions are tax-deductible, and withdrawals are tax-free. If you plan to buy your first home, consider setting up an FHSA with Matco to start accumulating contribution room. Like the RRSP and TFSA, your unused contribution room carries forward.
Have questions about these programs? Your Matco investment team is here to help. Don’t hesitate to reach out for personalized advice and support.
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