by Scott Ronalds

As we step into a new year, it’s timely to highlight a few important financial numbers for 2023.

First, the TFSA limit. The maximum annual contribution for Tax-Free Savings Accounts has been increased this year to $6,500 (from $6,000 last year). This means the total lifetime cumulative contribution room for these accounts is now $88,000 (for investors who meet all eligibility requirements). TFSAs offer a rare tax break that all investors should take advantage of.

Next, the RRSP contribution limit. The max you can add to your Registered Retirement Savings Plan this year is the lesser of 18% of your 2022 earned income or $30,780 (unless of course you have unused contribution room from previous years).

Not sure which account is best for you? Our TFSA vs RRSP Calculator can help. Or take a deeper dive as we walk through some rules of thumb and the virtues of each account type in a popular article from last year.

The extra contribution room can have a meaningful impact on the growth of your accounts over time — explore our Savings Growth Calculator to see just how much.

As a reminder, you can contribute to your accounts with us by simply calling 1-888-888-3147 7am-5pm PT Mon-Fri (we can electronically transfer money from the bank account we have on file to your Steadyhand accounts).

Happy New Year!

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