Search results
People also ask
What if I contribute more than my TFSA contribution room?
How much can I contribute to a TFSA?
When does my TFSA contribution count towards my limit?
When do I have an excess TFSA amount?
Oct 4, 2023 · With higher-than-expected inflation rates in 2023, the TFSA contribution limit increased from $6,500 to $7,000. If you have been eligible to contribute to the TFSA since its inception, you will have accumulated a total contribution room of $95,000 as of January 1, 2024.
- Overview
- Note
- On this page
- TFSA contribution room
- Example 1
- Where to find your TFSA contribution room information
- How to authorize a representative
- How to find your online mail
- How to know your TFSA contribution room
- How we receive your TFSA information
You do not need to have earned income to contribute to a TFSA. The maximum amount that you can contribute to your TFSA is limited by your TFSA contribution room.
All TFSA contributions made during the year, including the replacement or re-contribution of withdrawals made from a TFSA, will count against your contribution room.
Qualifying transfers, exempt contributions and specified distributions are not considered in the calculation of contribution room.
At any time in the year, if you contribute more than your available TFSA contribution room, you will have to pay a tax equal to 1% of the highest excess TFSA amount in the month, for each month that the excess amount remains in your account. For more information, see TFSA excess amount correspondence explained.
As the account holder, you are the only person who can do the following with your TFSA:
•make contributions
•make withdrawals
•determine how funds are invested
•TFSA contribution room
•Where to find your TFSA contribution room information
•How to authorize a representative
•How to find your online mail
•How to know your TFSA contribution room
•How we receive your TFSA information
Your TFSA contribution room is the maximum amount that you can contribute to your TFSA.
Only contributions made under a valid SIN are accepted as TFSA contributions.
If you were 18 or older in 2009, your TFSA contribution room grows each year even if you do not file an income tax and benefit return or open a TFSA.
If you turned 18 after 2009, your TFSA contribution room starts in the year you turned 18 and your TFSA contribution room accumulates every year after that year.
Investment income earned by, and changes in the value of your TFSA investments will not affect your TFSA contribution room for current or future years.
The annual TFSA dollar limit for each of the years from 2009 to 2024 are:
Brayden was eager to open his TFSA, but he didn’t turn 18 until December 21, 2022. On January 4, 2023, he opened a TFSA and contributed $12,500 ($6,000 for 2022 plus $6,500 for 2023 – the maximum TFSA dollar limits for those years). On the advice of his broker, he had opened a self‑directed TFSA and invested in stocks that increased in value. By th...
Your TFSA contribution room information can be found by using one of the following services:
•My Account for Individuals.
•MyCRA at Mobile apps – Canada Revenue Agency.
•Represent a Client if you have an authorized representative.
•Tax Information Phone Service (TIPS) at 1-800-267-6999.
In addition, if you want to receive a TFSA Room Statement, call us. You can also ask for a TFSA Transaction Summary that shows the information that we received from your TFSA issuer(s) about your contributions and withdrawals.
You can authorize a representative (such as your spouse or common-law partner, tax preparer, or accountant) to get information about your tax matters and give us information on your behalf. We will accept information from and/or provide information to your representative only after we are satisfied that you have authorized us to do so through My Account for Individuals, or go to Authorizing a representative – Overview.
Your authorization will stay in effect until any one of the following situations applies:
•it is cancelled by you or your representative
•it reaches the expiry date you choose
•we receive notification of your death
You or your representative can cancel the consent you gave by telephone or in writing.
Some Tax-Free Savings Account letters are available for online mail. Once you are registered for online mail, the CRA will send you an email notification when you have new mail to view in your secure online account. Correspondence available through online mail will no longer be printed and mailed through Canada Post. To learn more, go to Email noti...
Note
Qualifying transfers, exempt contributions and specified distributions are not considered in the calculation of contribution room.
Example 2
From 2014 until the end of 2022, Josh contributed the maximum TFSA dollar limit each year. As a result, his unused TFSA contribution room at the end of 2022 was zero. His TFSA contribution room at the beginning of 2023 was $6,500 (the 2023 TFSA dollar limit). On June 15, 2023, Josh made a contribution of $1,000. On October 26, 2023, he withdrew $4,000. His unused TFSA contribution room at the end of 2023 was $5,500 ($6,000 – $1,000). Josh calculated his TFSA contribution room for the beginning of 2024 as follows: The TFSA contribution room will not accumulate for any year during which the individual is a non-resident of Canada throughout the entire year. The TFSA dollar limit is not prorated in the year when an individual meets any one of the following conditions: turns 18 years of age dies becomes a resident or a non-resident of Canada
By the last day of February of the following year, all issuers are required to electronically submit a TFSA record to us for each individual who has a TFSA.
If you disagree with any of the information on your TFSA Room Statement, or TFSA Transaction Summary, including dates or amounts of contributions or withdrawals which your TFSA issuer has provided to us, contact your TFSA issuer. If any information initially provided by the issuer regarding your account is incorrect, the issuer must send us an amended record so that we can update our records.
At any time in the year, if you contribute more than your available TFSA contribution room you will have to pay a tax equal to 1% of the highest excess TFSA amount in the month, for each month that the excess amount stays in your account. For more information, see Tax payable on excess TFSA amount.
Nov 12, 2019 · With the exception of 2015, when the maximum contribution was spiked to $10,000, the most you can contribute hasn’t changed dramatically, year-over-year. Here’s a look at the contribution limits since the inception of the TFSA:
If you’ve always contributed the maximum amount into your TFSA, the most you can put in is $7,000 for 2024. But if you never contributed before and turned 18 in 2009 or earlier, you may contribute up to $95,000. And if you’ve deposited some money over the years, just subtract that number from $95,000 to arrive at your maximum contribution.
May 1, 2024 · The TFSA contribution room for 2024 is $7,000 for a total contribution of $95,000 since inception. Here are the TFSA limits by year since the introduction of the account in 2009, with a total TFSA room since inception at $95,000. Here is the CRA source with all the limits they track.
It's important to keep track of all your TFSA contributions, in the current year and in past years, so that you don't contribute above your maximum. That's important since over-contributions are subject to a monthly tax of 1 per cent for each month the excess amount stays in your TFSA.
