As a reminder, a TFSA permits any Canadian over the age of 18 to avoid wasting or make investments cash in a tax-free account. “Tax free” implies that you don’t pay taxes on the cash you make inside your TFSA. That means issues like curiosity funds, inventory dividends or capital good points. (Don’t get us began concerning the title. Yes, it’s referred to as a financial savings account, however it’s designed to hold investments).
Every 12 months extra room will get added to the contribution restrict for everybody 18 and older—and it’s cumulative that means your contribution room builds every year. Assuming the TFSA contribution restrict for 2022 can be $6,000, identical as for this 12 months, when you turned 18 earlier than the 12 months 2009, your most lifetime TFSA contribution restrict can be $81,500.
If you are taking cash out of the TFSA, you get that room back on January 1 the following year. Just don’t go over your restrict. Doing so will invite stiff penalties.
So how a lot room do you’ve gotten? Try our software to seek out out. (Note that within the second field under, you shouldn’t “double count” contributions that you’ve got withdrawn after which legitimately re-contributed within the following calendar 12 months or past, as this might result in a false over-contribution warning.)
TFSA contribution room calculator
Available TFSA contribution room:
- This Year:
- Next Year:
* Note that the calculator assumes subsequent 12 months’s contribution restrict would be the identical as this 12 months’s.
This software is designed for future planning functions solely and can’t account for previous changes to contribution room because of withdrawals (apart from these made inside the previous 12 months). If you assume you may be near your allowable contribution room restrict please contact the Canada Revenue Agency to confirm this info.
Updated May 2021.