Earn Income on Your $6,000 TFSA That’s Untouchable by the CRA
More on: Image source: Getty Images
November 2020 was a month that provided at least some good news in a year that has been full of bad news. Positive news on the vaccine front came along with the confirmation that the Canada Revenue Agency (CRA) is increasing the 2021 Tax-Free Savings Account (TFSA) contribution limit.
The CRA has increased the TFSA contribution limit each year since the account was introduced. The
TFSA limit for 2021 is $6,000. The increase is the same as the last two updates. The TFSA limit is indexed to inflation. The expected inflation next year is 1%, and since the limit is rounded to the closest $500, the CRA increased the TFSA limit by the same amount.