Marketing Monthly: TFSA (January 2023)
In this issue:
- CRA announces TFSA limit for 2023
- What is a TFSA and how does it work?
- Should you use TFSAs and savings to pay off your mortgage?
- 4 Reasons to open a TFSA
- TFSA vs RRSP: How to decide between the two
CRA announces TFSA limit for 2023
The TFSA contribution limit for 2023 has been officially released. That limit is $6,500, up from $6,000, which was the amount set from 2019 to 2022.
The increased TFSA limit for 2023 “is great news to those who have the resources to utilize their full contribution room,” said Aaron Hector, private wealth advisor with CWB Wealth in Calgary, in an email.
With today’s TFSA limit announcement, the total contribution room available in 2023 for someone who has never contributed and has been eligible for the TFSA since its introduction in 2009 is $88,000.
What is a TFSA & how does it work?
A Tax Free Savings Account (TFSA) is not only one of the great wonders of the world, it’s also one of the great misnomers of the English language. Why is that? Well, it’s not a savings account at all.
We don’t know who decided to call it a savings account, but whoever it was should probably relinquish the part of his or her job that involves naming stuff! We’re about to give you a whirlwind primer on all things TFSA.
Should you use TFSAs and savings to pay off your mortgage?
It’s important to consider whether your TFSAs are earning more than you’re paying in mortgage interest, as well as how close you are to retirement.
4 Reasons to open a TFSA
There are a variety of benefits to a TFSA, even if you only save a little a year. Your savings can build faster because you don’t pay tax any on your earnings.
TFSA vs RRSP: How to decide between the two
One of the most common questions out there is whether to invest in a registered retirement savings plan (RRSP) or a tax-free savings account (TFSA). Both will help you save, and save on taxes, but each works in a different way. Understanding how these accounts work will help you decide which is best for your current needs—and even when to use them in tandem.
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