Budget 2022 Highlights from MNP

Tax-Free Savings Account (TFSA)

Discover tax-free growth for your savings.

What is a TFSA and how does it work?

The Tax-Free Savings Account (TFSA) was created in 2009 to allow Canadian residents 18 years and older with a valid social insurance number to accumulate wealth and save for their goals.

The main benefit of a TFSA is that your future withdrawals are not taxed – including any dividends, interest, or capital gains you earn. That means your money can grow for as long as you want, and you can withdraw funds when you need them with no tax consequences.

How much can I contribute to my TFSA?

The TFSA contribution room is the total of:

  • The TFSA dollar limit of the current year
  • Any unused TFSA contribution room from previous years
  • Any withdrawals made from the TFSA in the previous year

The limit for each year could vary and is set by the CRA at the start of the year. While the maximum contribution for 2022 was at $6,000, for 2023 the maximum was boosted to $6,500. This means that an individual who has been eligible to contribute to a TFSA since its inception will have cumulative contribution room of $88,000.

What investments can you hold in a TFSA?

  • Cash
  • Mutual funds
  • Securities listed on a designated stock exchange
  • Guaranteed investment certificates (GIC)
  • Bonds
  • Certain shares of small business corporations

TFSA Advantages

Tax savings

Boost the growth of your investments when you save on tax. Your savings grow tax-free and there are no tax penalties when you withdraw funds.

A wide range of funds

A range of funds to meet all your needs, including money market, bond, dividend, domestic and international equity funds and Managed Risk Portfolios (wrap funds).

Extremely low management fees

Ranging from 0.65 to 1.77%1 depending on the fund selected—and no loads or routine service charges2 that can put a drag on your returns.

Extra security

You'll receive extra security through segregated investments funds from claims of creditors when you meet certain conditions.

Leading fund managers

Your funds are managed by experts with management styles to match your unique investment objectives.

Professional assistance

Get professional assistance in setting up your plan and making investment choices*—with no sales pressure.


You can carry forward unused contribution room indefinitely to future years. You can also withdraw funds available in your TFSA at any time for any purpose—and the full amount of withdrawals can be put back into your TFSA in future years providing you have TFSA contribution room. (Re-contributing in the same year may result in an over-contribution amount which would be subject to a tax penalty.)


Canadian residents 18 years or older.

Your valid Social Insurance Number (SIN).

It is the maximum amount that you are allowed to contribute to your TFSA each calendar year.

Your TFSA contribution room information can be found by using one of the following services:

  • Depending on the type of investment held in your TFSA, you can generally withdraw any amount from the TFSA at any time.  Withdrawing funds from your TFSA does not reduce the total amount of contributions you have already made for the year. 
  • Withdrawal from your TFSA(s) leaves room for recontribution in the following year.
  • Please note: Moving funds from one TFSA to another is not considered a withdrawal nor does it change your contribution limit.

If you’ve maxed out your TFSA room by December 31st of the current year, you can recommence contributions on January 1st of the following year.

Make the Smart Choice

Start making contributions to your TFSA today:

  1. Open a TFSA by filling out an application form and returning it with your contribution
  2. Or, transfer proceeds from another institution by filling out a TFSA transfer form.


You are eligible to participate in this TFSA if you are a member of the CDA or a participating provincial or territorial dental association (in Quebec, only CDA members are eligible) or if you work for a dentist who is a member of one of those associations. Your immediate family members (18 years of age and older) can also participate. Staff members of the CDA, all provincial and territorial dental associations and other specified dental organizations can participate as well.

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1 Management fees are subject to applicable taxes.

2 Surcharges may be levied for short-term trading.

* Restrictions may apply to advisory services in certain jurisdictions.