Annual Contribution History
The TFSA annual limit is adjusted periodically for inflation in $500 increments. Since its inception in 2009, the limit has fluctuated between $5,000 and $10,000, reflecting fiscal policy changes and macroeconomic shifts.
| Period | Annual Limit | Cumulative Total |
|---|---|---|
| 2009 – 2012 | $5,000 | $20,000 |
| 2013 – 2014 | $5,500 | $31,000 |
| 2015 | $10,000 | $41,000 |
| 2023 | $6,500 | $88,000 |
| 2024 | $7,000 | $95,000 |
Cumulative Room Calculation
TFSA contribution room is calculated as the sum of the current year's dollar limit, any unused room from previous years, and the total amount of withdrawals made in the preceding year. This makes the TFSA a flexible tool for those following a Canada Pension System guide.
For immigrants, the room starts accumulating only from the year they become a resident of Canada for tax purposes and turn 18. It does not accrue retroactively for years spent outside the country.
Investment Type Restrictions
Qualified investments include stocks listed on designated exchanges, GICs, bonds, and mutual funds. Holding non-qualified investments or carrying out a business of trading within a TFSA can trigger severe penalties from the CRA.
Permitted Assets
- • TSX/NYSE Listed Securities
- • Government Bonds
- • ETFs and REITs
Prohibited Actions
- • High-frequency day trading
- • Private company shares
- • Non-designated exchanges
Withdrawal Replacement Rules
Unlike the RRSP, TFSA withdrawals are added back to your contribution room, but only at the start of the following calendar year. Replacing a withdrawal in the same year it was taken without sufficient available room will result in an over-contribution penalty of 1% per month.