Latest Government changes with RRIFs TFSA limits 2016

Tax Free Savings Account Yearly Limits

Table of Contents

RRIF and TFSA Limit Changes

The federal government has made it easier for seniors and those wanting to save more money. In 2015, the amount was increased to $10,000, but for 2016, the amount was lowered back to $5,500

Also, with RRIF (registered retirement income funds), it will require most seniors to withdraw a lower percentage of their RRIFs each year. RRIFs were not increasing to the same degree, so having the withdraw at a lower rate is helping to maintain the value, and not have it decrease as was happening at times with the previous higher rates.

These new increased contribution limits will mainly be useful for those already maxing out these amounts each year, while allowing for those to invest more into these in the future. Right now approximately 46% of the 1.9 million of those contributing are seniors. Some are opting to use this to help fund a business startup, purchasing a first home, and some are using it to help their kids with university/college.

  • The TFSA annual dollar amount for 2009, 2010, 2011 and 2012 was $5,000.
  • The TFSA annual dollar amount for 2013 and 2014 was $5,500.
  • The TFSA annual dollar amount for 2015 was $10,000
  • The TFSA annual dollar amount for 2016 is $5,500

What is a TFSA?

A (TFSA) Tax-Free Savings Account offers tax benefits for saving money. Investment income, as well as capital gains and dividends, earned in a Tax-Free Savings Account are not taxed. Contributions to a Tax-Free Savings Account are not deductible for ones’ income tax. A TFSA may encompass cash and/or other investments such as certain stocks, bonds, mutual funds or (GICs) Guaranteed Investment Certificates.

What is a RRIF?

A (RRIF) Registered Retirement Income Fund is a tax-deferred retirement plan. Individuals use a Registered Retirement Income Fund to create income from the savings accumulated under ones’ Registered Retirement Savings Plan.

Take Your First Step Towards A Debt Free Life

If you are overwhelmed by debt, call us at 1-844-962-9200 to book a FREE, confidential appointment. We will review your financial situation in detail and discuss all of your options with you. Alternatively, you can fill out the form below and our team will reach out to you. 

Share This!

Very knowledgeable, helpful and fast service
Anthony Mcfeat
1701299046
I am so delighted to have found this company. They are the best. Everyone in the office is very nice never to busy to assist you. Thank you David Sklar and Shirley and associates for being you. 😊🌺😊
Deborah
1701263894
Trina was amazing and quick. No judgement was made and they all made me feel I made the right decision. Would highly recommend them
Crystal Minaker
1701222756
Trina was very easy to work with. Any questions I had were answered promptly. What seemed like a complicated process was explained in a clear manner that wasn't at all intimidating. It made for a more comfortable experience during a turbulent time.
Eldon Aubie
1701134421
Jackie is very professional...I would recommend David Sklar to anybody especially knowing how understanding they are.
Kimberley Lyder-Niles
1700968057
I had Shirley and Kim take care of my finances. From the very first moment I spoke with Shirley I could sense how caring, professional and patient she was. She was also very understanding with my lack of financial knowledge and never made me feel dumb as some other companies have.Her and Kim were always very quick to respond to emails, always available if I called and answered my abundance of questions in such detail that I now believe I have a thorough understanding of how finances work. I am hopeful about my fresh financial start and very grateful I had the privilege of meeting and working with these two beautiful women.I also spoke briefly with Richard over zoom and he to was extremely friendly, patient and made sure I was well taken care of.I could not recommend David Sklar and Associates more. Thank you again.
Shayleen Muzi
1700875951
Good professional team! Jennifer is the best, helped me through everything and answered all my questions. Made the process easy! Would recommend Jennifer and the team at David Skylar.
gary round
1700868378
Christine and her team are amazing and professionals. I called for help and she responded right away to help me.thank you and I really appreciated for everything you do.
Marcelina Sunas
1700837681
Thank you so much for the helpYou took away the most stressful things in our lives which was our dept you guys are amazing and would recommend you to everyone
Kaitlyne Sunas
1700833567
The staff here are fantastic (Cori handled my visit) and are willing to go above and beyond to help people who need help, I recommend them 100% for people who are looking to move on in good standing.
Vito De
1700805574
js_loader
DS david skalr icon

Book your free consultation.

Call 1-844-962-9200 or fill out the form below. We’ll do the rest.

Contact Us