The Minister of Finance announced this morning that the annual TFSA contribution limit will be increased by $500 to $5,500 for 2013.
The limit has remained unchanged since its inception in 2009 although the Government did indicate when the TFSA was launched that the limit would be increased with inflation in increments of $500.
The TFSA allows you to contribute up to $5,000 for each tax year from 2009 through 2012 and $5,500 for 2013. Although there are no deductions allowed on contributions, investment income accumulates in the account completely tax-free as are withdrawals.
The TFSA is a suitable retirement savings vehicle for those who will be in the same or higher tax bracket during their retirement years.
To find out more about the TFSA limits, please see our TFSA articles about this account.