The Tax Free Savings Account (TFSA) is a flexible, registered account that currently provides an annual contribution limit of $5,500 to Canadian Residents 18 years of age or over. TFSAs became available in 2009, when the contribution limit was set at $5,000 annually. In 2013 the limit rose to $5,500 and the contribution limit was $10,000 for one year in 2015. For the years 2016, 2017, and 2018, the limit was set back to $5,500.
Unused contribution room is carried forward to future years. Furthermore, any amounts withdrawn from a TFSA in a given year may be added back to the TFSA as early as the following year – in addition to the normal contribution limit. For more information about TFSAs please call us at 613-236-9101.