Tax-Free Savings Account

Help your clients grow their tax-free savings.

Your clients can contribute as much as $6,000 every year

The annual contribution limit has changed a few times since TFSAs were launched in 2009. This year’s limit is $6,000. And thanks to the lifetime carry-forward room, new TFSA investors may be able to contribute as much as $75,500 in 2021.

Best of all: any growth in the value of TFSA investments is tax-free. You won’t be taxed while your savings grow and you won’t be taxed when you withdraw.


  • Withdrawals are tax-free.
  • Unused contribution room accumulates and can be used in subsequent years.
  • TFSA assets can be used as collateral for a loan.
  • Withdrawals don’t affect eligibility for such benefits as Old Age Security, Guaranteed Income Supplement or the Child Tax Benefit.
  • TFSA assets can be used as collateral for a loan.

TFSA carry-forward rule

Every year, investors can contribute up to the TFSA dollar limit for the year PLUS any previous unused contribution room AND the amount they withdrew last year. It’s a long sentence, but a simple rule. Here’s an example:

Let’s say your client maximized her TFSA contributions every year before withdrawing $2,000 last year to help pay for a vacation. This year, she can contribute $6,000 PLUS the $2,000 she withdrew last year, for a total of $8,000.


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Tax Savings

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