Increase to TFSA contribution limits for 2015

May 19, 2015

As announced in the 2015 Federal Budget, the Tax-free Savings Account (TFSA) dollar limit for 2015 has increased from $5,500 to $10,000 annually. This is great news to help plan members to save for a more secure financial future. Plan members can begin taking advantage of this new limit immediately.

About the Tax-free Savings Account (TFSA)

Introduced in 2009, the Tax-free Savings Account (TFSA) offers Canadian residents who are 18 years of age or older, the opportunity to earn tax-free investment income during their lifetime.

Contributions to a TFSA and the interest paid on money borrowed to invest in a TFSA are not deductible for income tax purposes. However, income generated in a TFSA (for example, investment income and capital gains) is tax-free, even when it is withdrawn. The new limit will no longer be subject to increases based on inflation.

Unused TFSA contribution room can be carried forward to later years. In addition the total of TFSA withdrawals in a calendar year is added to the TFSA contribution room for the next calendar year.

If you are interested in learning more about Sun Life Financial’s TFSA for your workplace retirement and savings plan, please contact your Sun Life Financial Group Retirement Services representative today.