A Tax Free Savings Account is an investment account that allows you to meet short and long term goals. The dividends, interest, capital gains or any growth within the account is tax free. Any amount withdrawn from a TFSA is also tax free.

TFSA contribution room

You will accumulate TFSA contribution room for each year even if you do not file an income tax and benefit return or open a TFSA.

The annual TFSA dollar limit for the years 2009 to 2012 was $5,000.
The annual TFSA dollar limit for the years 2013 and 2014 was $5,500.
The annual TFSA dollar limit for the year 2015 was $10,000.
The annual TFSA dollar limit for the years 2016 to 2018 was $5,500.
The annual TFSA dollar limit for the years 2019 to 2022 is $6,000.
The anticipated TFSA dollar limit for the year 2023 will increase to $6,500

This type of account is eligible for individuals 18 years and older who hold a Social Insurance Number (age may vary depending on provinces). The benefits of this account is that you do not require an earned income in order to contribute to a TFSA.

Withdrawals from your TFSA account can be done at any time and in any amount. However, you are only allowed to re-contribute the withdrawn amount after the year it was withdrawn.

Take advantage of the benefits of incorporating a TFSA account into your savings portfolio.

To learn more, please visit: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4466/tax-free-savings-account-tfsa-guide-individuals.html