The federal government is increasing the yearly Tax-Free Savings Account (TFSA) contribution limit from $5,500 to $6,000 starting in 2019. This is a scheduled update based on inflation. The actual TFSA yearly limit was set at $5,000 in 2009 when the investment was created, but is indexed to inflation every year and rounded to the nearest $500. The only exception was in 2015 when the TFSA limit was increased to $10,000 for that year only. With the new increase, that means that anyone who has never contributed to a TFSA and is old enough to have had one at inception has a cumulative contribution room of $63,500 starting January 1st, 2019.
You can locate your TFSA Contribution room limit by going to the Canada Revenue website and clicking on “My Account”. If you have not registered for my “My Account” online, it is a good idea to do so now. Once registered for “My Account” you will be able to see all of your Tax and Benefit information, make changes to your status and address, and see your current CPP (Canada Pension Plan) and OAS (Old Age Security) balances.