Latest news with #contributionRoom
CBC
a day ago
- Business
- CBC
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.
CBC
30-05-2025
- Business
- CBC
TFSA contribution limit info has been unavailable since mid-April, CRA confirms
For more than a month Canadians looking to see how much contribution room is remaining in their tax-free savings accounts (TFSA) on the Canada Revenue Agency (CRA) website have been out of luck. In an email to CBC News, CRA spokesperson Nina Ioussoupova confirmed that information has been unavailable since mid-April. "There have been delays in processing TFSA annual information returns this year," Ioussoupova said in the email. "To avoid displaying erroneous information on My Account, the display of TFSA information, including TFSA contribution room, has been blocked since April 17, 2025." The tax-free savings accounts were introduced by Prime Minister Stephen Harper's government in 2009. Each year, Canadians who are at least 18 years old receive an increase to the amount of money they can invest. In 2025, for example, the additional contribution limit is $7,000. If someone was 18 in 2009, 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. But if a person contributes every year, but doesn't reach the limit, it can be more difficult to calculate. Withdrawals are also added to a person's contribution limit the following year. Ioussoupova said in her email that the CRA is working to update TFSA contribution information "as quickly as possible." She added that to "avoid over-contributing, review the records provided by your issuer." Ioussoupova said taxpayers can fill out what's called a RC343 Worksheet to estimate their TFSA contribution room for the year. Philip Spagnolo, a senior accountant with Jakubo Chartered Professional Accountants in Sudbury, said it's important people are aware of the TFSA contribution room before they invest funds. "There's a one per cent interest that's charged on the amount that you over contribute. So you want to be aware of that so you don't run into that problem," he said. Spagnolo said it's possible to file an appeal with the CRA if someone is charged interest for over-contributing to their TFSA, but there's no guarantee they would be successful.
