Tax-Free Savings Account 

A TFSA is a registered savings plan that enables you to earn investment income tax-free within the account.

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Contribution Features:

• Available to Canadian residents aged 18 or older with a valid SIN.
• Contributions are not tax-deductible.
• Unused contribution room can be carried forward indefinitely.

Maximum Annual Contributions:

Year              Limit (CAD)

2009–2012     $5,000 

2013–2014     $5,500 

2015              $10,000 

2016–2018     $5,500 

2019–2022     $6,000 

2023              $6,500 

2024–2025     $7,000 

• Cumulative TFSA limit as of 2025: $102,500
  (if you were at least 18 and a Canadian resident since 2009)
• In-Kind Contributions:
• Transferring assets from a non-registered account to a TFSA may have tax implications:
• If the asset has gained value, the capital gain is taxable in the year of the transfer.
• If the asset has lost value, the capital loss cannot be claimed.

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Withdrawal Features:

• Withdrawals are tax-free, and any investment income or growth is not taxed.
• Withdrawals are added back to your contribution room starting the following calendar year.
• For example: If you withdraw $10,000 in 2025, you may recontribute that amount starting in 2026.