The TFSA has existed since 2009. It’s a way to save money tax-free so you can achieve your personal goals (buying a home or car, saving for retirement, etc.). To open one, you must be at least 18 years old and have a valid social insurance number.
Contribution rules
TFSA contributions are limited
Provided that you’re 18 years old, you’ll accumulate new contribution room every year. You therefore cannot contribute before the age of 18. This amount can vary from one year to the next.If you don’t use it, you can do so later on.
Contributions - Annual limits
| Years | Annual limit |
|---|---|
| 2009 to 2012 | $5,000 per year |
| 2013 to 2014 | $5,500 per year |
| 2015 | $10,000 |
| 2016 to 2018 | $5,500 per year |
| 2019 to 2022 | $6,000 per year |
| 2023 | $6,500 |
| 2024 to 2026 | $7,000 per year |
Cumulative contribution room since 2009: $109,000 (for someone eligible since the TFSA was introduced).
Money can be withdrawn from the TFSA and then put back the following year. This means your contribution room is never lost.
Advantages of the TFSA
The income generated in your TFSA is not taxable. You therefore save on taxes and can accumulate more money than if you invest outside a registered account.
Who can benefit from a TFSA?
A TFSA could be appropriate for anyone who has investments outside a registered plan.
It’s suitable for people with a modest or high income.
You’ll need a savings and investment strategy to achieve your objective. Know about your full advantages by completing the form.