The TFSA may turn out to be the greatest gift ever given to the Canadian taxpayer. All it needed to do was grow up. And that, it’s rapidly doing.
The program began humbly enough in 2009, allowing all Canadians age 18 or over the opportunity to contribute $5,000 per year (non-deductible). Now, recognizing the inflation protection built into the TFSA rules originally, the Federal Government has announced that 2013’s contribution limit (and all future years) will be 10% higher, or$5,500.
As of January 1, 2013, that means individuals could have put in as much as $25,500(4 years 2009 thru 2012 at $5,000/year, plus $5,500 for 2013). Of course, with some luck in the markets and re-investment of the dividends, the actual value of TFSA accounts should be significantly higher at this time. A married couple could have over $51,000 in these accounts, by next January. How is yours doing?