Moving money from RRSPs, RRIFs and TFSAs in retirement + MORE Jan 14th
How does a spouse’s death impact your TFSA contribution room?
– moneysense.ca
If the maximum I can have in my TFSA by 2024 is $95,000, and my late husband’s TFSA funds are added, how is the new amount regarded?
—Roberta
Sorry for your loss, Roberta. There’s not a simple answer to your question, so I will try to explain the considerations.
Available TFSA contribution room
Canadians aged 18 and older accumulate new tax-free savings account (TFSA) contribution room every year. The annual TFSA contribution limit has changed many times since the account was introduced in 2009. As of January 1, 2025, an individual born in 1991 or earlier (who was 18 years or older in 2009) who has never contributed to a TFSA may have as much as $102,000 of cumulative TFSA room.
YearAnnual TFSA limitCumulative TFSA limit2009$5,000$5,0002010$5,000$10,0002011$5,000$15,0002012$5,000$20,0002013$5,500$25,5002014$5,500$31,0002015$10,000$41,0002016$5,500$46,5002017$5,500$52,0002018$5,500$57,5002019$6,000$63,5002020$6,000$69,5002021$6,000$75,5002022$6,000$81,5002023$6,500$88,0002024$7,000$95,0002025$7,000$102,000
In addition to year of birth, TFSA room is impacted by a couple of factors…
2024 tax credits, due dates and when you can file: Your 2024 income tax return guide
– moneysense.ca
Tax news in Canada
New capital gains inclusion rate: With its 2024–25 budget, the federal government announced that capital gains in excess of $250,000 per year would be subject to a 66.7% inclusion rate effective June 25, 2024. That’s up from the 50% that applied previously (and which still applies to your first quarter-million in yearly gains). However, with the prorogation of government and that the actual amendment to the Income Tax Act bringing the rule into effect has not yet passed, many wondered if these changes would apply to your 2024 tax return…
Canada has new rules for high-interest loans—here they are
– moneysense.ca
As of January 1, 2025, Canada’s criminal interest rate officially reduced to 35% annual percentage rate (APR), and payday loan costs are now capped at $14 per $100 borrowed. On the surface, these changes are meant to make borrowing more affordable. However, they could have unintended consequences. While the lower costs to borrow might reduce the financial strain for some, there’s a risk these changes could potentially leave vulnerable Canadians with fewer loan options and may push those in need toward even riskier, unregulated credit options.
Here’s what the new rules mean for borrowers and lenders, and a look at better solutions to take control of your financial situation.
What is APR?
Short for annual percentage rate, an APR is the amount you pay per year to borrow money. An APR includes the total interest, plus any additional fees, closing costs and required insurance. So, it more accurately reflects the cost of borrowing than interest alone.
Read the full definition of APR in the MoneySense Glossary of finance and investing terms…
