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  1. Single people should be aware that in the event of death, your TFSA is collapsed and becomes becomes part of your estate. Even if you have a named beneficiary who has room in their TFSA the monies cannot be transferred tax free unlike those who have a surviving spouse or children who have been named as beneficiaries. This is grossly unfair and I have sent a letter to my MP to ask her to intercede in having this tax law changed on a point of Tax fairness.

    1. Thanks for pointing this out. So, if you pass away and have a named beneficiary the TFSA can’t be transferred tax free even if they have room in their TFSA unlike a couple who has a surviving spouse or children. What if your beneficiary was a child and you were single?

      1. To the best of my knowledge you would be okay as long as the child is a named beneficiary and has TFSA room. Having said that, best to contact CRA to confirm

  2. It was about time to increase! Lowering it down from the $10K we had once was a dumb idea, but hey it appealed to the masses who cannot save anything anyway.

  3. I am happy to see an increase in the TFSA limit. In our case it means I can tax shelter an extra $500 each of money we have already saved up and have been paying tax on the income it earned. One point you didn’t make Mr CBB is that this doesn’t have to be “new money”. If you can’t find an extra $500 to contribute by the end of the year, consider moving some of your existing savings under the TFSA tax free umbrella. Since there’s no tax on withdrawals if you need the funds…why not tax shelter them?

    Also, I like to contribute our TFSA/RRSP funds at the start of every year to take advantage of a longer compounding income period. So, when I budget for our TFSA savings in my 2019 budget – those funds will be contributed in January 2020. I am always saving for the following year so that there’s no last minute scrambling to try and find money, trying to cut expenses nor considering borrowing funds…the way I see many folks do right before the RRSP contribution deadline.

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