Answers to your most common Tax-Free Savings Account questions
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What is a TFSA?
Who is eligible and when can I open a TFSA?
How much money can I contribute and are my contributions tax deductible?
The contribution limit for 2020 is set at $6,000.00, up to a total contribution of $69,500.00. The table below outlines the historical contribution limits for TFSAs. The contribution limit is indexed to inflation, which means it will rise with the cost of living. TFSA contributions are not tax deductible nor is any interest on money borrowed to invest in a TFSA.
|2009 - 2012||$5,000|
|2013 - 2014||$5,500
|2016 - 2018||$5,500|
What if I can't contribute the full contribution limit?
How will I know what my contribution limit is for each year?
Do I have to pay income tax on my withdrawals?
What happens if I contribute more than my contribution room?
If I am earning no income can I still make contributions to my TFSA?
When can I withdraw the money I've contributed to my TFSA?
If I withdraw money from my TFSA, can I re-contribute the withdrawn amount later in the tax year?
Can I make spousal contribution to my spouses TFSA?
Can I use my TFSA as security for a loan?
Can a non-resident of Canada open a TFSA?
If I became a non-resident while I have a TFSA, can I still make contributions?
What happens to my TFSA if I die?
Conversely, if your spouse or common-law partner is not appointed as successor holder, a sole beneficiary or a joint beneficiary of your TFSA assets, upon death, your TFSA account will be terminated and assets paid to the named beneficiaries. The payment will not impact the beneficiaries TFSA contribution room but the proceeds cannot be contributed directly to a TFSA. If the beneficiaries want to contribute any funds in the future to their own TFSA, it will be subject to their contribution room.