TFSA-Tax Free Savings Account

Your Perfect Savings/Investment Partner

The Tax-Free Savings Account (TFSA) is a government approved program that enables every Canadian who is a minimum of 18 years of age to save taxes on their saving account or investment income. While the account’s flexibility makes it particularly effective for meeting a variety of savings goals such as home purchase, renovations and travel it can also be structured so you can invest in various vehicles, like a TFSA savings account, Term Deposits, mutual funds* and private portfolio solutions.

Speak to one of our FSO’s or Credential Asset Management Inc. Investment Specialist to review which savings or investment vehicle is best for you.  


  • The current maximum contribution limit is $6,000 for 2020.
  • The starting age for contributions is 18.
  • There’s no age limit to contributing to TFSAs; you can continue to invest even after the age of 71, the limit for RRSPs.
  • Investment income earned in a TFSA is tax-free, regardless of whether it is interest, dividends or capital gains.
  • You can withdraw money at any time for any reason without being taxed.
  • If you have not contributed in the past or did not meet maximum contributions in any given year, you can catch up on unused contributions. (see chart below)
  • TFSA withdrawals do not impact any government benefits or assistance programs such as child tax benefits, old age security or other guaranteed income supplements. This means low-income earners can generate tax-free income without it affecting their support.
  • Upon death, TFSA assets can be transferred to a spouse without impacting the recipient’s contribution room.


  • You are not required to have earned income to contribute to a TFSA.
  • Withdrawals from the plan are tax-free.  However, you can’t re-contribute that amount in the same calendar year. (If you need funds for a short time and plan to replace them quickly, a good strategy is to make the withdrawal late in the calendar year, so you can re-contribute Jan. 1 of the following year.)
  • The best way to keep track of your unused contribution room is to check out your notice of assessment from the CRA.
  • If you don't contribute the maximum amount, you can carry forward your unused contribution room indefinitely. For example, if you contributed $2,500 to your TFSA in 2009, your contribution room for 2010 would be $7,500 ($2,500 carried forward from 2009 plus $5,000 for 2010). Use the chart to calculate your unused room.
Year TFSA Annual Limit TFSA Cumulative Limit
2009 $5,000 $5,000
2010 $5,000 $10,000
2011 $5,000 $15,000
2012 $5,000 $20,000
2013 $5,500 $25,500
2014 $5,500 $31,000
2015 $10,000 $41,000
2016 $5,500 $46,500
2017 $5,500 $52,000
2018 $5,500 $57,500
2019 $6,000 $63,500
2020 $6,000 $69,500
TFSA yearly limit was set at $5,000 back in 2009 when the investment account was first created.

* Mutual funds are offered through Credential Asset Management Inc.



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