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Active Tax-Free Savings Account (TFSA) users look forward to November because the Canada Revenue Agency (CRA) makes an important announcement. If you have an account but unaware of the latest news, the new $6,000 TFSA contribution limit for 2021 is a pivotal change.
If you maxed out your limit in 2020 and withdrew $6,000 or less too, you can recontribute the same amount in January 2021 or succeeding months. In case there’s an unused contribution room, you can add it to the new space and contribute more to your TFSA.
The TFSA has become an all-important saving and investment tool for all Canadians 18 years old and above. Those who have been maximizing their TFSAs since 2009 must have a small fortune by now. Besides the instant hedge against inflation, users can derive tax savings or compensate for tax payables every tax season.