TFSA contributions and withdrawals

Making a TFSA contribution

You can contribute up to $6,000 per year.1

What happens if I don’t contribute the full amount each year?

You can carry forward any unused contribution room from previous years. There is no limit on how much contribution room you can build up or on the length of time you can build it up.

Example: If you didn't contribute to your tax-free savings account between 2009 and 2019 and you were at least 18 years old in 2009, you could contribute $63,500 in 2019.

What happens if I contribute more than my limit in a year?

The Canada Revenue Agency (CRA) will assess a penalty of 1% per month on the amount over your total contribution room for your tax-free savings account.

How will I know if I over-contribute?

The CRA will confirm unused room and limits each year. This information is available through "My Account" on the Canada Revenue Agency website.

How much can I put in my TFSA if I’ve never contributed before?

Year Contribution limit
2019 $  6,000
2018 $  5,500
2017 $  5,500
2016 $  5,500
2015 $10,000
2014 $  5,500
2013 $  5,500
2012 $  5,000
2011 $  5,000
2010 $  5,000
2009 $  5,000
TOTAL $ 63,500

Note: You need to be at least 18 to open a TFSA.

Making a TFSA withdrawal

Subject to your investment terms, you can take money out of your tax-free savings account any time and for any purpose. There are no restrictions on how much you can withdraw.

Do I pay any income tax on withdrawals?

No, withdrawals are tax-free.

Do withdrawals affect my taxable income?

No, since withdrawals are not taxable, you don’t have to report them as income.

What happens if I withdraw funds and later decide to put them back in the account?

You can put money you withdraw back into your account in the same year, as long as you have available contribution room. If you don’t have room, wait and put the money back in the next year. If you contribute more than your limit you will be subject to a 1% penalty for each month you are over the limit.

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