Don’t forget, the 2016 contribution limit for the Tax-Free Savings Account is now back to $5,500. The Liberal government officially scaled back the limit from $10,000 last December, but the new rule only takes effect this year. That means you won’t lose any of the room you accumulated last year, even with the limit change, meaning that in 2016, total unused TFSA contribution room sits at $46,500.
The bottom line: You can’t save as much in a TFSA in 2016, but last year’s $10,000 contribution limit is still yours, free and clear.
More tax tips here.