TFSA Contribution 2018

Preparing for life after work. RRSPs, RRIFs, TFSAs, annuities and meeting future financial and psychological needs.

User avatar
Peculiar_Investor
Gold Ring
Gold Ring
Posts: 7098
Joined: 01 Mar 2005 14:52
Location: Calgary
Contact:

Re: TFSA Contribution 2018

Post by Peculiar_Investor » 06 Dec 2017 17:10

The Government of Canada has published Indexation adjustment for personal income tax and benefit amounts - Canada.ca to include the 2018 adjustments.

Our wiki article, Tax-Free Savings Account has been updated to show the contribution limits that go into effect for 2018. The calculated unround indexed amount in 2018 will reach $5,722.

Since TFSA contribution room is rounded to the nearest $500, it looks likely that the 2019 TFSA contribution limit will bump up to $6000.
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams

queerasmoi
Gold Ring
Gold Ring
Posts: 3063
Joined: 27 May 2008 16:25

Re: TFSA Contribution 2018

Post by queerasmoi » 10 Dec 2017 17:32

Unused TFSA contribution room to date + Total withdrawal made in this year + next year’s TFSA dollar limit = TFSA contribution room at the beginning of next year
I just have a spreadsheet with columns for: deposits, withdrawals, new room.
I calculate my limit as: All new room ever - all deposits ever + all withdrawals ever - all withdrawals current calendar year
Then every New Year, I enter a row to record the new room, and I adjust the range of the "all withdrawals current calendar year" sum to start only in the current year.

User avatar
GreatLaker
Silver Ring
Silver Ring
Posts: 130
Joined: 16 Dec 2014 13:02
Location: Toronto

Re: TFSA Contribution 2018

Post by GreatLaker » 11 Dec 2017 08:02

Here is a spreadsheet I created to track TFSA room for up to three accounts:
https://www.dropbox.com/s/5fv3nq74xzl45 ... .xlsx?dl=0
The first principle in speculating is never give anyone advice to buy or sell shares,
because, where perspicacity is weakened, the most benevolent advice can turn out badly.
Joseph de la Vega

User avatar
Koogie
Gold Ring
Gold Ring
Posts: 1409
Joined: 09 Mar 2012 16:44

Re: TFSA Contribution 2018

Post by Koogie » 11 Dec 2017 10:02

GreatLaker wrote:
11 Dec 2017 08:02
Here is a spreadsheet I created to track TFSA room for up to three accounts:
https://www.dropbox.com/s/5fv3nq74xzl45 ... .xlsx?dl=0
Contribution rows out to 2047 ? Someone is hopeful... :P
Buy very little, sell even less.

BRIAN5000
Gold Ring
Gold Ring
Posts: 5885
Joined: 08 Jun 2007 23:27

Re: TFSA Contribution 2018

Post by BRIAN5000 » 11 Dec 2017 11:23

If you need a spreadsheet to track your TFSA withdrawals and deposits IMO you might not be using it to its full advantage, if you use a checking account instead no need for spreadsheet.
“Sometimes you are going to sell early and wish you would’ve held on, other times you will hold on a
little bit longer and wish you would’ve sold early - this is just part of the game.” - Frank Zorilla via Abnormal Returns

User avatar
SkaSka
Silver Ring
Silver Ring
Posts: 561
Joined: 29 Nov 2012 01:21
Location: Raincouver

Re: TFSA Contribution 2018

Post by SkaSka » 11 Dec 2017 12:45

Our preferred way to contribute is $5,500 in both TFSAs right away on January 1, then RRSP contributions to both accounts once the tax return is back by ~April, then once all RRSP room is tapped out, contributions into the 2 joint taxable accounts, then during the last few months of the year, have $5,500 set aside by end of December to do it all over again.

User avatar
GreatLaker
Silver Ring
Silver Ring
Posts: 130
Joined: 16 Dec 2014 13:02
Location: Toronto

Re: TFSA Contribution 2018

Post by GreatLaker » 11 Dec 2017 21:03

Koogie wrote:
11 Dec 2017 10:02
Contribution rows out to 2047 ? Someone is hopeful... :P
If I live as long as my Mom's current age I will run out of rows. And she is optimistically talking about living another 10 years. :beer:

BRIAN5000 wrote:
11 Dec 2017 11:23
If you need a spreadsheet to track your TFSA withdrawals and deposits IMO you might not be using it to its full advantage, if you use a checking account instead no need for spreadsheet.
Yes, I should hang my head in shame around here. In less enlightened times I opened two TFSAs, then decided to close both and consolidate to one at a discount broker. Concurrently I had a couple of large expenses in the same year (new shingles, new septic system) and had to pull some money out.

But thanks to Finiki and FWF I am a changed man benefiting from much greater wisdom and financial success. :rofl:
The first principle in speculating is never give anyone advice to buy or sell shares,
because, where perspicacity is weakened, the most benevolent advice can turn out badly.
Joseph de la Vega

User avatar
Koogie
Gold Ring
Gold Ring
Posts: 1409
Joined: 09 Mar 2012 16:44

Re: TFSA Contribution 2018

Post by Koogie » 12 Dec 2017 11:41

GreatLaker wrote:
11 Dec 2017 21:03
If I live as long as my Mom's current age I will run out of rows. And she is optimistically talking about living another 10 years. :beer:
I wasn't making a cheap shot at your anticipated longevity, more a cheap shot at the greed of current and future governments. :wink:

2047 would take us out to about 240-250K in contribution levels at least.. hard to imagine any government willing to give up that much in potential tax.
Buy very little, sell even less.

User avatar
AltaRed
Diamond Ring
Diamond Ring
Posts: 18425
Joined: 05 Mar 2005 20:04
Location: Ogopogo Land

Re: TFSA Contribution 2018

Post by AltaRed » 12 Dec 2017 12:32

I think I've mentioned this before....but I believe the lifetime contribution cap will be circa $100k, a short 5 years from now or so.
Imagefiniki, the Canadian financial wiki The go-to place to bolster your financial freedom

User avatar
Insomniac
Gold Ring
Gold Ring
Posts: 1835
Joined: 29 Oct 2011 19:01
Location: Vancouver Island

Re: TFSA Contribution 2018

Post by Insomniac » 12 Dec 2017 13:38

There is no lifetime limit to the amount of contributions.
http://www.taxtips.ca/tfsa/contributions.htm

longinvest
Gold Ring
Gold Ring
Posts: 1410
Joined: 10 Sep 2012 17:26
Location: QC

Re: TFSA Contribution 2018

Post by longinvest » 12 Dec 2017 13:41

Insomniac wrote:
12 Dec 2017 13:38
There is no lifetime limit to the amount of contributions.
http://www.taxtips.ca/tfsa/contributions.htm
+1 :thumbsup:
Last edited by longinvest on 12 Dec 2017 16:15, edited 1 time in total.
Bogleheads investment philosophy | Simple index portfolios | Lifelong Portfolio: 25% each of (domestic/international)stocks/(nominal/inflation-indexed)bonds | VCN/VXC/VAB/ZRR

User avatar
Koogie
Gold Ring
Gold Ring
Posts: 1409
Joined: 09 Mar 2012 16:44

Re: TFSA Contribution 2018

Post by Koogie » 12 Dec 2017 13:49

Insomniac wrote:
12 Dec 2017 13:38
There is no lifetime limit to the amount of contributions. YET.
FIFY
Buy very little, sell even less.

User avatar
AltaRed
Diamond Ring
Diamond Ring
Posts: 18425
Joined: 05 Mar 2005 20:04
Location: Ogopogo Land

Re: TFSA Contribution 2018

Post by AltaRed » 12 Dec 2017 14:04

Remember what happened with Cap Gains exemptions and tax rate changes over the decades? It will happen eventually with TFSAs. Naive to think otherwise.
Imagefiniki, the Canadian financial wiki The go-to place to bolster your financial freedom

User avatar
Insomniac
Gold Ring
Gold Ring
Posts: 1835
Joined: 29 Oct 2011 19:01
Location: Vancouver Island

Re: TFSA Contribution 2018

Post by Insomniac » 12 Dec 2017 14:49

Koogie wrote:
12 Dec 2017 13:49
Insomniac wrote:
12 Dec 2017 13:38
There is no lifetime limit to the amount of contributions. YET.
FIFY
That quote is not mine. It's from the taxtips website. I provided the link.

User avatar
Insomniac
Gold Ring
Gold Ring
Posts: 1835
Joined: 29 Oct 2011 19:01
Location: Vancouver Island

Re: TFSA Contribution 2018

Post by Insomniac » 12 Dec 2017 14:58

AltaRed wrote:
12 Dec 2017 14:04
Remember what happened with Cap Gains exemptions and tax rate changes over the decades? It will happen eventually with TFSAs. Naive to think otherwise.
OK, I see what you meant now. You believe that the gov't will set a cap of $100K. Who knows? I doubt that it would cost them an election if they put a cap on it, so they probably will.

User avatar
Mordko
Silver Ring
Silver Ring
Posts: 149
Joined: 24 Jan 2016 09:26

Re: TFSA Contribution 2018

Post by Mordko » 12 Dec 2017 20:45

TFSA is a copy-paste of a British ISA. TFSA is a slightly improved version with one major downside: ISA's annual limit is >$10k (thanks Justin!) ISA has been around for almost 20 years, so people had an opportunity to contribute >>$100K. There is no discussion of limiting life-time contributions to ISA.

Roth IRA is a bit different but also older than TFSA and with a slightly higher annual contribution limit. The key difference is that people with decent incomes aren't allowed to contribute. However in the US personal taxes are far lower than here.

Anything is possible but limiting lifetime TFSA contributions seems no more likely than any other arbitrarily made-up tax plan.

User avatar
kcowan
Diamond Ring
Diamond Ring
Posts: 13035
Joined: 18 Apr 2006 20:33
Location: Pacific latitude 20/49

Re: TFSA Contribution 2018

Post by kcowan » 13 Dec 2017 04:20

There are several things in the tax code that make sense to many of us as future developments but we never cease to be amazed that politicians do not pick them.
For the fun of it...Keith

User avatar
AltaRed
Diamond Ring
Diamond Ring
Posts: 18425
Joined: 05 Mar 2005 20:04
Location: Ogopogo Land

Re: TFSA Contribution 2018

Post by AltaRed » 13 Dec 2017 09:59

Mordko wrote:
12 Dec 2017 20:45
Anything is possible but limiting lifetime TFSA contributions seems no more likely than any other arbitrarily made-up tax plan.
The Liberals especially are most likely to cap lifetime contribution room at some point because ideologically they do not want the 'rich' to have access to perhaps $1 million (to use a number) of tax free wealth creation capability that could then multiply itself many times over in a lifetime. The middle class will never be able to fully fund 6 or 7 digits of contribution room and that will be one of the trigger points as well. The Feds will be too desperate for tax revenue at some point to service the debt to leave that golden egg alone.

Remember Feb 22,1994 when the lifetime cap gains exemption was frozen (taken away) to service the debt? The TFSA is sort of an equivalent 'back door' way of resurrecting that 'space' over time, and it too will be affected in some upcoming tax revenue crisis given the recklessness of our spendthrift politicians.

I am under no illusions about history repeating itself.
Imagefiniki, the Canadian financial wiki The go-to place to bolster your financial freedom

User avatar
deaddog
Gold Ring
Gold Ring
Posts: 2615
Joined: 19 Jan 2008 19:59
Location: Central BC/Arizona

Re: TFSA Contribution 2018

Post by deaddog » 13 Dec 2017 12:45

AltaRed wrote:
12 Dec 2017 12:32
I think I've mentioned this before....but I believe the lifetime contribution cap will be circa $100k, a short 5 years from now or so.
How do you figure 5 years? At contribution limit of 5500 it will take another 8 years to get to 96,000
Most of our so-called reasoning consists of finding arguments for going on believing as we already do.( J.H. Robinson)

User avatar
kcowan
Diamond Ring
Diamond Ring
Posts: 13035
Joined: 18 Apr 2006 20:33
Location: Pacific latitude 20/49

Re: TFSA Contribution 2018

Post by kcowan » 13 Dec 2017 15:22

While we are wildly speculating, why not have the TFSA replace the RRSP? I could see an optional increase in TSFA limits based on foregoing RRSP room as an evolutionary step.
For the fun of it...Keith

User avatar
AltaRed
Diamond Ring
Diamond Ring
Posts: 18425
Joined: 05 Mar 2005 20:04
Location: Ogopogo Land

Re: TFSA Contribution 2018

Post by AltaRed » 13 Dec 2017 15:40

deaddog wrote:
13 Dec 2017 12:45
AltaRed wrote:
12 Dec 2017 12:32
I think I've mentioned this before....but I believe the lifetime contribution cap will be circa $100k, a short 5 years from now or so.
How do you figure 5 years? At contribution limit of 5500 it will take another 8 years to get to 96,000
We are already going to be $57.5k in a few weeks. A move to $6k/yr thereafter, perhaps $6.5k within 5 years.... so "5 years or so" is about right. Perhaps 6 in total.
Imagefiniki, the Canadian financial wiki The go-to place to bolster your financial freedom

User avatar
adrian2
Diamond Ring
Diamond Ring
Posts: 11554
Joined: 19 Feb 2005 08:42
Location: Greater Toronto Area

Re: TFSA Contribution 2018

Post by adrian2 » 13 Dec 2017 16:44

kcowan wrote:
13 Dec 2017 15:22
While we are wildly speculating, why not have the TFSA replace the RRSP? I could see an optional increase in TSFA limits based on foregoing RRSP room as an evolutionary step.
I've answered the same question from you in the past: the RRSP system is well integrated with the pension plans, resulting in relative fairness for people with or without a pension at work.

It would be grossly unfair to offer the same (RRSP/TFSA/combined) room to civil servants who are very well provided in terms of pensions, and to people without any pensions.
Imagefiniki, the Canadian financial wiki
“It doesn't matter how beautiful your theory is, it doesn't matter how smart you are. If it doesn't agree with experiment, it's wrong.” [Richard P. Feynman, Nobel prize winner]

User avatar
deaddog
Gold Ring
Gold Ring
Posts: 2615
Joined: 19 Jan 2008 19:59
Location: Central BC/Arizona

Re: TFSA Contribution 2018

Post by deaddog » 13 Dec 2017 16:51

Is limiting the amount contributed going to solve the perceived problem?

Those with a little luck will still accumulate and be able to compound returns tax free.

The rich get richer.

I can't make investment decisions today based on what I think might happen in the future. I have to play by todays rules and adjust after the rules change.
Most of our so-called reasoning consists of finding arguments for going on believing as we already do.( J.H. Robinson)

User avatar
AltaRed
Diamond Ring
Diamond Ring
Posts: 18425
Joined: 05 Mar 2005 20:04
Location: Ogopogo Land

Re: TFSA Contribution 2018

Post by AltaRed » 13 Dec 2017 17:59

It's always a matter of degree. Give $100k of room and smart folks will parlay that into something significant over time. Give them $1M of room and they might parlay that into something 10 times as big.

I look at it this way. When the pool of untaxed (and untaxable) capital gets big enough, and/or when the Treasury is hurting and/or when a public groundswell perceives this as a 'rich get away with murder' scheme, nothing will be off the table. Not sure why y'all don't understand tax policy does not stand still for generations at a time.

We will all take advantage of what we can while we can. Nothing new about that.
Imagefiniki, the Canadian financial wiki The go-to place to bolster your financial freedom

Post Reply