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.
The 2023 TFSA contribution limit is $6,500. If you have never contributed to a TFSA and meet the eligibility requirements, the current, cumulative total you can deposit is $88,000.
If you made withdrawals in 2022, you can recontribute that same amount effective January 1st, 2023. If you have unused carry forward room, you can contribute it to your TFSA at any time (unused contributions roll over each year).
Past TFSA contribution limits
The deadline to make your RRSP contributions for the 2022 tax year is March 1, 2023. The contribution limit for 2022 is 18% of your annual earned income, or, to a maximum of $29,210. You can also carry forward your unused contribution room from previous tax years.
The contribution limit for 2023 is 18% of your annual earned income, or to a maximum of $30,780. The deadline for your 2023 tax year contribution will be February 29th, 2024; however, you can make contributions at any time this year.
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.
We can set up regular contributions. For example, you could contribute $541.66 each month to your TFSA, bringing it up to $6,500 - the 2022 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 is a general guideline only. For more information, taxpayers should refer to the CRA’s website http://www.cra-arc.gc.ca/menu-e.html or call 1-800-959-7383.
Disclosure: 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.