Question
Boris just inherited $200,000 from his brother's estate. He is thinking of contributing to his Tax-Free Savings Account (TFSA). What is the maximum Boris can
Boris just inherited $200,000 from his brother's estate. He is thinking of contributing to his Tax-Free Savings Account (TFSA). What is the maximum Boris can contribute in 2023?
We are April 24, 2023
Boris is 72 years old
Boris retired in 2016
Boris opened his TFSA account in 2009 where he contributed $5,000 at that time (the only contribution that he has made to date)
Boris withdrew $8,000 from his TFSA in May 2022 when his account market value was $8,248
Boris no longer remembers how the TFSA works, but if he is eligible, he would like to use the money inherited from his brother's estate to make a lump sum contribution to his TFSA. He would also like to consider any carry-forward room that he may have.
Tax-Free Savings Account (TFSA): Annual Limits
Years | Annual Limit | Years | Annual Limit |
---|---|---|---|
Year started 2009-2012 | $5,000/year | 2016-2019 | $5,500/year |
2013-2014 | $5,500/year | 2019-2022 | $6,000/year |
2015 | $10,000/year | 2023 | $6,500/year |
Select one:
a.
$88,000
b.
Nothing can be contributed to his TFSA as Boris is retired and therefore can no longer contribute under the TFSA rules
c.
$83,000
d.
$91,000
e.
Nothing can be contributed to his TFSA as Boris is over age 71 and therefore can no longer contribute under the TFSA rules
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