TFSA limit 2018

What’s your TFSA limit for 2018?

Do you know what your TFSA limit is for 2018?

A TFSA, aka Tax-Free Savings Account, is an investment product that lets your money grow and accumulate tax-free. That means you don’t pay taxes on the money you make inside your TFSA, such as interest, dividends and capital gains.

Your TFSA limit determines how much you can deposit into your TFSA accounts each year. And fortunately, it’s not a “use it or lose it” situation – this limit accumulates over time if you don’t use it.

For 2018, the annual limit is $5,500 and the cumulative limit is $57,500.

YearTFSA annual limitTFSA cumulative limit
2018$5,500$57,500
2017$5,500$52,000
2016$5,500$46,500
2015$10,000$41,000
2014$5,500$31,000
2013$5,500$25,500
2012$5,000$20,000
2011$5,000$15,000
2010$5,000$10,000
2009$5,000$5,000

So what does that mean for you?

1) If you don’t have any TFSAs, then you can contribute the full cumulative limit of $57,500 in 2018.

2) If you have TFSAs and haven’t withdrawn from them this year, then in 2018 you can contribute the cumulative limit of $57,500 minus the amount you’ve already contributed.

Example: If you currently have $10,000 in TFSAs, you would be able to contribute up to $47,500 this year ($57,500 – $10,000 = $47,500).

3) If you have TFSAs and have withdrawn from them this year, then you can contribute the cumulative limit of $57,500 minus the amount you’ve already contributed and minus the amount you withdrew this year.

Example: If you currently have $10,000 in TFSAs and withdrew $2,000 from your TFSAs this year, you would be able to contribute up to $45,500 this year ($57,500 – $10,000 – $2,000 = $45,500). You would get the $2,000 back in contribution room next year.

There are a range of TFSA options available to meet the needs of different investors, including savings accounts, term deposits, mutual funds, stocks and bonds.

As always, we recommend that you talk to your financial institution to get more specific advice. You can talk to a financial planner at Vancity about options relating to your specific situation. Not a Vancity member? Join us.

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This blog post provides general information only, and does not constitute financial, accounting, tax, legal or other professional advice. We encourage you to obtain personalized advice from qualified professionals regarding your particular circumstances. Please see our Terms of Use. 

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