Information about TFSA contribution limits now available, says the CRA
The Canada Revenue Agency (CRA) says it has resolved an issue that prevented people from seeing how much contribution room they had left in their tax-free savings accounts (TFSAs).
That information first became unavailable on April 17.
CRA spokesperson Charles Drouin told CBC News in an email that the federal agency introduced a new data validation process this year to ensure that tax information submitted to them is accurate.
"Upfront validations now advise these filers of errors with their information return submission in real-time and prevent the submission of invalid returns," Drouin wrote.
He said the new system would ultimately improve the quality of the data the Canada Revenue Agency receives and allow for any errors to be corrected faster.
But he added that "stricter validations and new processes caused delays in receiving and processing the information returns. As a result, there have been delays in processing TFSA annual information returns this year."
Each year, Canadians 18 or older get more contribution room in their tax-free savings accounts, which shield investments from taxes.
In 2025, for example, the new contribution limit was $7,000.
If someone was 18 in 2009 – the year the the savings accounts were introduced – has lived in Canada since then and never contributed to their TFSA, their total contribution limit would be $102,000 as of Jan. 1, 2025.
If someone didn't properly track their contributions over the years, though, they could risk going over their limit, which comes with a one per cent interest penalty per month for those funds over the limit.
The CRA website notes that posted contribution limits do not take into account any contributions to the TFSA made since Jan. 1, 2025.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CBC
an hour ago
- CBC
WestJet dealing with 'cybersecurity incident' impacting access to internal systems, app
WestJet is alerting its employees and the public about a "cybersecurity incident" involving the Calgary-based airline's internal systems and app. In a news release on Friday, the airline said several people trying to access its services have faced "restricted access" as a result of the incident. "We have activated specialized internal teams in co-operation with law enforcement and Transport Canada to investigate the matter and limit impacts." The release said the airline is "expediting efforts" to keep its operations safe and "safeguard sensitive data and personal information," and apologizes for any disruption to access to its services. It added it's "too early to speculate on any details," but WestJet will share more information when available, and advises people using its services and employees to be cautious about sharing personal data. This story will be updated with any response.
CTV News
an hour ago
- CTV News
Montreal ends 2024 with slight budget surplus
As it grappled with inflation and an unstable global economy, Montreal ended 2024 with a slight budget surplus. As it grappled with inflation and an unstable global economy, Montreal ended 2024 with a slight budget surplus. It posted a $176.8 million surplus last year, according to its annual financial report made public Friday, representing 2.5 per cent of its total budget. In 2023, the city had a $187.6 million surplus. The city said there was an increase in government transfers for housing and real estate growth was higher than expected, which brought in more tax revenue. The Projet Montréal administration reported it invested $1.9 billion on capital expenditures, namely to maintain its infrastructure, and spent another $1.7 billion on services. The city says its investments between 2023 and 2024 are similar to pre-pandemic times. Most investments were made in environmental and underground infrastructure assets ($642.0 million), road infrastructure ($459.6 million), buildings ($330 million), and parks, green spaces and playgrounds ($261.2 million). The city admits it had to borrow money for some of these investments but says its financial strategy takes the debt into account. As of December, Montreal's debt stood at $6.8 billion. According to the city, it has an AA credit rating from Standard & Poor's and Aa2 from Moody's, which 'reflects the sound management of municipal debt' and its ability to meet its financial commitments. But opposition officials say Montreal would be in the red if it wasn't for financial support from the provincial government. 'We have not seen this administration being strong on economic development over the last eight years,' said Ensemble Montreal's finance critic, Alan DeSousa. 'The revenues don't come in to support the amount this administration likes to spend … [it] opens the tap and hopes what comes out is not water, but money.' Benoit Dorais, vice-chair of the executive committee, says that money is spent in ways that address 'the needs of Montrealers.' 'We did a lot of action in terms of housing. It's one of our priorities, and … the environment,' he said. With files from CTV News Montreal's Olivia O'Malley
CBC
an hour ago
- CBC
Owner of Robertson Trading surveys wildfire damage that burned historic building to the ground
Scott Robertson said the store held a lifetime's worth of Indigenous artwork, beadwork and history.
