election affecting your TFSA contribution

election affecting your TFSA contribution

Currently their is no deadline for making TFSA contributions, but with the upcoming election, both the NDP and Liberal party have hinted at reducing the yearly TFSA contribution to $5,500 from where it currently stands at $10,000. That being said, if either of these parties win, the change is not likely to take effect till 2016.

Keep in mind that if you withdraw funds from your TFSA, an equal amount of TFSA contribution room will be reinstated the following year. This means that if you’re planning a TFSA withdrawal in early 2016, perhaps to fund a home renovation, down payment or tobuy a new car, consider withdrawing the funds by the end of this year. This way you wont have to wait till 2017 to re-contribute that amount if new funds become available. 

Just some food for thought. 


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