Lesson TFSA 101
What is a TFSA
Learn about the benefits of investing with tax-free savings accounts (TFSAs).
What to know about TFSA contributions
Your contribution room begins when you turn 18, and any unused room is carried forward indefinitely until you use it.
Here are the TFSA contribution limits for each year since 2009:
Year | Contribution room ($CAD) |
2009-2012 | $5,000 / year |
2013 & 2014 | $5,500 / year |
2015 | $10,000 / year |
2016-2018 | $5,500 / year |
2019-2022 | $6,000 / year |
2023 | $6,500 / year |
2024 | $7,000 / year |
Total room since ‘09 | $95,000 total |
What to know about TFSA withdrawals
- With a few exceptions, withdrawals from TFSAs are tax-free and can be made at any time.
- You can also re-contribute the amount you withdrew in the next calendar year.
- For example, if you withdrew $2,000 from a maxed-out TFSA in 2022, in 2023 you would have been able to deposit the $2,000 back to your TFSA along with the newly added yearly contribution room of $6,500 for 2023, for a total of $8,500. Yearly added TFSA contribution varies from year to year.
Investments you can hold in a TFSA
While some think a TFSA is simply a savings account, TFSA are an incredibly versatile investment account. You can build and diversify a portfolio by investing in TFSA-eligible investment products:
- Stocks (both Canadian and international)
- ETFs
- Options
- Mutual funds
- Bonds
- Gold and silver bars
- GICs
- Cash
For a full list of eligible investments, visit the CRA
Benefits of a Questrade TFSA
- No annual account fee. No opening fees.
- Hold both Canadian and U.S. dollars in the account at the same time.
- Open a TFSA in minutes.
- Contribute to your TFSA quickly and easily online.
Start investing confidently
Ready to open an account and take charge of your financial future? It's easy. Get started in minutes.
Note: The information in this blog is for educational purposes only and should not be used or construed as financial or investment advice by any individual. Information obtained from third parties is believed to be reliable, but no representations or warranty, expressed or implied, is made by Questrade, Inc., its affiliates or any other person to its accuracy.
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