Tax Free Savings Accounts

An important element to your long term savings plan

The TFSA is an extremely flexible registered savings plan that can help you meet your unique savings and investment goals both short and long term. Within your TFSA, you can hold a number of different products (such as a savings account, term deposit, and mutual funds) similar to RRSPs.

Any individual who is a resident of Canada, 18 years of age or older, and who holds a valid Social Insurance Number is eligible to open a TFSA. There is no maximum age limit and a person may hold more than one TFSA, providing you do not exceed your contribution limit.

The Details

  • $5,000 was the maximum TFSA contribution limit from 2009 through 2012.
  • $5,500 was the maximum TFSA contribution limit from 2013 through 2018, with the exception of 2015. The limit in 2015 was $10,000.
  • $6,000 is the annual TFSA contribution limit for 2019.
  • Unused contribution room will accumulate each year.
  • Unused contribution room is carried forward indefinitely.
  • The cumulative total allowable contribution is $63,500.
  • Contributions are NOT tax deductible.
  • The Holder of the TFSA is responsible for ensuring the maximum contribution limit is not exceeded annually.
  • A TFSA withdrawal will increase the contribution room for the year after withdrawal.
      Tax-free Investment Savings:

      What is unique about the TFSA?

      • There are no restrictions on the way TFSA funds (contributions AND earnings) may be used (eg. purchase a car, renovate your home, start a small business, take a vacation). You can make withdrawals at any time (withdrawals may be restricted by investment terms) and for any reason tax free.
      • All income levels may benefit from a TFSA.
      • Any income or capital gains earned in the TFSA will not be taxed.

      Special Features

      • TFSA withdrawals will NOT impact your eligibility for federal income-tested benefits and credits, such as the Canada Child Tax Benefit, OAS, GIS, GST, EI, and working income tax benefit.
      • You will have the option to transfer your TFSA assets to your spouse or common law partner upon death without any impact on the survivor's existing contribution room. Alternately, you may name anyone other than a spouse or common law partner as a beneficiary.

      CRA Answers and More

      To access a worksheet to help you calculate your contribution amount availalbe and for more information, check out the Canada Revenue Agency website:



      *Mutual funds and securities related financial planning services are offered through Qtrade Asset Management Inc., Member MFDA