Skyline Wealth Explains: TFSA Contribution Room for 2021 - Skyline Wealth

Skyline Wealth Explains: TFSA Contribution Room for 2021

The Tax-Free Savings Account (TFSA) was introduced in Canada 12 years ago. If you’re 18 years of age or older and have a Social Insurance Number, you are eligible for this type of account. TFSAs remain a useful tax shelter and a great complement to an RRSP account, but they are sometimes underutilized and treated as a cash savings account. There are multiple ways you can put your TFSA to work.

Family reviewing their finances with an advisor

Maximizing your TFSA

A TFSA is often used in conjunction with an RRSP, as both accounts offer different types of tax benefits. However, where an RRSP is most often used singularly for retirement savings, TFSAs can be used to house funds for other types of milestones: a new vehicle, a new home, a vacation, starting a business, and an emergency fund, to name a few.

In a TFSA, earnings (such as interest income, dividends, and distributions) and capital gains are not taxed, making this account a great investment vehicle. TFSAs can hold almost all of the same types of investments as RRSPs—including many types of alternative investments, which are often already structured to be as tax-efficient as possible.

TFSA contribution limit for 2021

The Canadian government recently announced the contribution limit for TFSAs for 2021. The limit for 2021 is $6,000, matching the amount set in the previous two years.

TFSA contribution limits since 2009

The following chart shows TFSA contribution limits since inception in 2009. The contribution limit accumulates, so if you open a TFSA account in 2021, you may be able to deposit up to $75,500 within the 2021 calendar year.

2021 $6,000
2020 $6,000
2019 $6,000
2018 $5,500
2017 $5,500
2016 $5,500
2015 $10,000
2014 $5,500
2013 $5,500
2012 $5,000
2011 $5,000
2010 $5,000
2009 $5,000

Maximizing your TFSA with Skyline Wealth

Skyline Wealth offers four private alternative investment products, each focusing on a different asset class. All four investments are TFSA-eligible.

Apartment REIT IconSkyline Apartment REIT
Professionally-managed multi-residential properties in secondary and tertiary Canadian markets

Commercial REIT IconSkyline Commercial REIT
Professionally-managed light industrial properties along major Canadian transportation corridors, with a focus on logistics and warehousing

Retail REIT IconSkyline Retail REIT
Professionally-managed retail properties in secondary and tertiary Canadian markets, with a focus on ‘everyday essential’ brands

Skyline Clean Energy Fund IconSkyline Clean Energy Fund
A portfolio of professionally-maintained clean energy producing assets across Ontario

With our experience and insight, we’d be happy to discuss how our private investment products may be a suitable fit for your investment portfolio and how you can maximize your TFSA and other registered accounts. Get in touch with us any time.

[1] Skyline, or Skyline Group of Companies, is an umbrella term used to generally refer to all associated entities.

Disclaimer:

Skyline Wealth Management Inc. (“Skyline Wealth”) is an Exempt Market Dealer registered in the provinces of Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, Québec and Saskatchewan. The information provided herein is for general information purposes only and does not constitute an offer of securities. Sales of interests in any investments offered by Skyline Wealth are only made to certain eligible investors pursuant to regulatory requirements and available exemptions. Any information provided herein is current as at the date of publication and Skyline Wealth does not undertake to advise the reader of any changes.

Commissions, trailing commissions, management fees and expenses all may be associated with investments in exempt market products. Please read the confidential offering documents before investing. There is no active market through which the securities may be sold, and redemption requests may be subject to monthly redemption limits. Exempt market products are not guaranteed, their values change frequently, and past performance may not be repeated. Nothing in this email should be construed as investment, legal, tax, regulatory or accounting advice. Prospective investors must make an independent assessment of such matters in consultation with their own professional advisors.

Some of the investment products offered by Skyline Wealth are from related issuers. A full list of issuers related to Skyline Wealth and details of the relationship between them is available upon request.