Sarah, aged 32, has never contributed to a Tax-Free Savings Account (TFSA). She became a Canadian resident in 2008. Assuming the annual TFSA dollar limit was $5,000 for 2009-2012, $5,500 for 2013-2014, $10,000 for 2015, $5,500 for 2016-2018, $6,000 for 2019-2022, and $6,500 for 2023, what is her maximum TFSA contribution room at the beginning of 2023?

Question: Sarah, aged 32, has never contributed to a Tax-Free Savings Account (TFSA). She became a Canadian resident in 2008. Assuming the annual TFSA dollar limit was $5,000 for 2009-2012, $5,500 for 2013-2014, $10,000 for 2015, $5,500 for 2016-2018, $6,000 for 2019-2022, and $6,500 for 2023, what is her maximum TFSA contribution room at the beginning of 2023?

Answer options: ✅ $88,000

• $81,500
• $75,000
• $94,500

Correct answer: $88,000

Explanation: Sarah was at least 18 years old in 2009 (when TFSAs were introduced). Her contribution room accumulates from that year onward. Total limits: (5,0004) + (5,5003) + 10,000 + (5,5003) + (6,0004) + 6,500 = 20,000 + 16,500 + 10,000 + 16,500 + 24,000 + 6,500 = $93,500. This is a hard question due to the exact sum required.