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With the new year here, you now have additional TFSA contribution room

With the calendar turning to 2017, every adult will be allowed to contribute an additional $5,500 to their tax-free savings account. That means another $5,500 can be invested and the gains will never be taxed. So with the new year here, you have now additional TFSA contribution room.

If you have been an adult since the TFSA was initiated in 2009 the cumulative contribution total is now $52,000; but exactly how much you can contribute will be different depending on your withdrawals over the past eight years.

If you turned 18 in the past eight years you have been climbing the TFSA ladder from ground zero.

Again, total cumulative contribution amounts would vary if you have made withdrawals, but if you have turned 18 in the past eight year(s) and have never made a withdrawal, your contribution limits are

18 $5,500
19 $11,000
20 $21,000
21 $26,000
22 $32,000
23 $37,000
24 $42,000
25 $47,000
26+ $52,000

If you make a withdrawal, the contribution space is returned to you in the next calendar year.

The Canada Revenue Agency is the ultimate authority on your individual contribution situation. The CRA tabulates total contribution space at the end of each calendar year but might not post it on your individual online profile by March 1.

Do you have enough information about the T4 slips? here are the KEY FACTS YOU SHOULD KNOW ABOUT T4 SLIPS

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