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Jamie Golombek, Managing Director, Tax & Estate Planning, CIBC Financial Planning and Advice

Great news! The TFSA contribution amount for the year 2019 has been increased to 6,000 dollars. That means a cumulative contribution limit of 63,500 dollars in 2019 if you've never made a TFSA contribution before. Now, the nice thing is that you can go back and contribute based on prior years' room, assuming again that you haven't made those contributions.

The nice thing about the TFSA is of course you're contributing after-tax income to the TFSA but the money grows completely tax-free while it's in the account. Any withdrawals are also tax-free when you take them out. And the best part of all is when you take money out of the TFSA, you can actually re-contribute the amount that you've withdrawn starting the following calendar year. That flexibility is not generally available with an RRSP.

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