by Scott Ronalds

As we step into a new year, it’s timely to highlight a few important financial numbers for 2024.

First, the TFSA limit. The maximum annual contribution for Tax-Free Savings Accounts has increased this year to $7,000 (from $6,500 last year). This means the total lifetime cumulative contribution room for these accounts is now $95,000 (for investors who meet all eligibility requirements). TFSAs offer a rare tax break that all investors should take advantage of.

Next, the RRSP contribution limit. The max you can add to your Registered Retirement Savings Plan this year is the lesser of 18% of your 2023 earned income or $31,560 (unless of course you have unused contribution room from previous years).

If you’re not sure which account is best for you, our TFSA vs RRSP Calculator can help.

The extra contribution room for both account types can have a meaningful impact on the growth of your portfolio over time. To put it in real terms, adding an extra $500 to your TFSA each year (i.e. contributing $7,000 instead of $6,500) can add up to roughly $30,000 in additional growth over 25 years, assuming an after-fee return of 6%. Explore our Savings Growth Calculator to run some numbers on your own.

As a reminder, you can contribute to your accounts with us by simply calling 1-888-888-3147 between 7am to 5pm PT Monday to Friday (we can electronically transfer money from the bank account we have on file to your Steadyhand accounts).

Happy New Year!