The TFSA is tax-advantaged and suitable for many types of savings goals. A wide variety of products are available within a TFSA and although contributions are not tax-deductible, investment income earned grows tax free. There are no penalties or tax consequences for making withdrawals. Though TFSA assets may impact eligibility for provincial income-tested benefits and credits in certain provinces, they have no impact on eligibility for any federal income-tested benefits and credits.
If you have money in a bank account or non-registered investment account, it may make sense to maximize your TFSA contributions. You can do this through lump sum payments at any point during the year or we can help you set up a schedule of regular monthly deposits.
If you have never contributed to a TFSA and you have been over the age of 18 since 2009, in 2025 your total unused room will be $102,000. Otherwise, your total TFSA contribution room can be calculated by adding:
- Your 2025 contribution limit of $7,000 plus
- Any unused TFSA contribution room from previous years plus
- Any withdrawals made from the TFSA in previous years
Since there are a number of factors that can complicate this calculation, and since there are penalties for over-contributing to your TFSA, we strongly recommend that you contact the Canada Revenue Agency to confirm exactly what your 2025 contribution limit is.
If you would like to set up a TFSA or to contribute to your existing TFSA, please contact us at 204-478-8500 or by email at efg@efgi.com.