Department of Finance Canada has increased the Tax-Free Savings Account (TFSA) annual contribution limit to $5,500 for the 2013 taxation year. This is the first time the contribution limit has been raised since TFSAs have been available.
The annual contribution limit is indexed with the Consumer Price Index to account for inflation, and rounded to the nearest $500. In 2013, an individual’s total contribution limit will be $25,500. The increased limit, while modest, presents useful opportunities for tax savings.
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