TFSA & RRSP Contributions: What you need to know in 2024
December 11, 2023
Key information about contribution amounts, deadlines, and ways to contribute.
Download (PDF 86 KB)To start, it’s best to confirm your personal contribution limits by checking your Canada Revenue Agency (CRA) notice of assessment, which you can find from the CRA directly online at https://www.canada.ca/en/revenue-agency/services/e-services/e-services-individuals/account-individuals.html, or, by calling 1-800-959-8281. Also, be sure to double-check your latest transactions, as recent contributions aren’t always immediately updated with the CRA.
It’s important not to overcontribute to your accounts as they will be subject to a punitive tax of 1% per month!
TFSA
The 2024 TFSA contribution limit is $7,000. If you have never contributed to a TFSA and meet the eligibility requirements, the current, cumulative total you can deposit is $95,0001.
If you made withdrawals in 2023, you can recontribute that same amount effective January 1, 2024. If you have unused carry forward room, you can contribute it to your TFSA at any time (unused contributions roll over each year).
TFSA Contribution Limits for the Last 10 Years
RRSP
The deadline to make your RRSP contributions for the 2023 tax year is February 29, 2024. The contribution limit for 2024 is 18% of your annual earned income, or, to a maximum of $31,560. You can also carry forward your unused contribution room from previous tax years.
Ways to contribute
There are a few different ways you can contribute to your TFSA and RRSP accounts. Reach out to your Mawer Investment Team to assess your current contribution room and investment options. Be sure not to overcontribute to your accounts as they will be subject to a punitive tax of 1% per month.
Contribute from your bank account
We can pull the funds directly from your bank account electronically.
Contribute from another Mawer account
We can move funds from another Mawer account, such as a taxable account. Your Investment Team will be able to provide more details on any potential tax implications.
Contribute regularly
We can set up regular contributions. For example, you could contribute ~$583 each month to your TFSA, bringing it up to $6,996—nearly the new 2024 maximum—by the end of the year. If you would like to set up regular contributions or make changes to any existing regular contributions, please contact your Investment Team.
This publication and its contents are for informational purposes only and are believed to be accurate at time of publication. For updates or to learn more, please refer to the Canada Revenue Agency’s website at http://www.cra-arc.gc.ca/menu-e.html or call 1-800-959-7383.
1 Assumes that from 2009 to 2024 you have been a Canadian resident, at least 18 years of age, and eligible to contribute each year to a TFSA, and have not made any redemptions. Visit the Canada Revenue Agency website for more details.
Disclaimers:
This communication is an overview only and it does not constitute financial, business, legal, tax, investment, or other professional advice or services. It is not intended to be a complete statement of the law or an opinion on any matter. If you (or any of your family members) are a U.S. citizen, hold a U.S. green card, or are otherwise considered a U.S. resident for U.S income/estate tax purposes, the Canadian and/or U.S. tax implications could be substantially different from those outlined herein. No one should act upon the information in this communication as an alternative to legal, financial or tax advice from a qualified professional. No member of Mawer Investment Management Ltd. is liable for any errors or omissions in the content or transmission of this email or accepts any responsibility or liability for loss or damage arising from the receipt or use of this information.
While we endeavour to ensure that the information in this communication is correct, we do not warrant or represent its completeness or accuracy. This communication is not updated, and it may no longer be current. To the maximum extent permitted by applicable law, we exclude all representations, warranties and conditions relating to this communication.
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Mawer Investment Management Ltd. provides this publication for informational purposes only and it is not and should not be construed as professional advice. The information contained in this publication is based on material believed to be reliable at the time of publication and Mawer Investment Management Ltd. cannot guarantee that the information is accurate or complete. Individuals should contact their account representative for professional advice regarding their personal circumstances and/or financial position. This publication does not address tax or trust and estate considerations that may be applicable to an individual’s particular situation. The comments are general in nature and professional advice regarding an individual’s particular tax position should be obtained in respect of any person’s specific circumstances.
