The Tax-Free Savings Account (TFSA) contribution limit for 2020 is $6,000, remaining the same as 2019.
If you have never contributed to a TFSA and have been eligible since its introduction in 2009, your cumulative contribution room will be $69,500 in 2020.
Withdrawals are tax free and can be contributed at any time in the following tax year. If you make a withdrawal, your gains and losses will be factored into your contribution room.
What is a TFSA?
The TFSA program was introduced in 2009 as a way for individuals, ages 18 and older to save money, tax-free, throughout their lives. TFSA contributions are not subject to income tax, and any income generated or earned in the account is normally tax-free, even after it is withdrawn.1
You can hold a wide range of investments in a TFSA account, including: GICs, ETFs, stocks and bonds, mutual funds and high-interest savings accounts.
We can help you determine if a TFSA is right for you. Get in touch with us at 1.800.561.9401 or firstname.lastname@example.org
1The Tax-Free Savings Account, https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/tax-free-savings-account.html