TFSA 2024 Contribution Limit - $7,000

You can contribute up to $7,000 to your TFSA in 2024 if you are a Canadian resident over 18 years of age and hold a valid social insurance number. If you have not made a contribution to a TFSA and have been eligible since it was introduced in 2009, you can contribute up to $95,000.

With a TFSA you can build your savings faster since you won’t be taxed on your investment earnings. This allows you to save for what matters most to you—whether it's starting your home renovation project, setting aside funds for post-secondary tuition, or planning for a dream vacation. Plus, you have the freedom to withdraw your money when needed without incurring any penalties.

If you are considering opening a TFSA and want to learn more about it, here is a quick primer to help you get started.

What is a TFSA?

A Tax-Free Savings Account (TFSA), is a flexible tax-advantaged savings account that allows you to earn investment income, including interest, dividends, and capital gains, without paying tax on those earnings. Contributions to a TFSA are made with after-tax dollars, but withdrawals, including investment gains, are tax-free.

What are the key features of a TFSA?

• Flexibility – You have the freedom to select investment options based on your financial objectives and you can withdraw any amount from your TFSA at any time without incurring a penalty
• Tax-free growth and withdrawals – Your investment earnings grow tax-free if you stay within your contribution limits and you won’t be taxed on the interest earned when it is withdrawn
• Rolling contribution limits – The amount you withdraw from your TFSA is added back to your contribution room the following year  
• Contributions - Contributions are made with after-tax dollars and are not tax-deductible, but withdrawals from your account are tax-free

What are the TFSA investment options?

You can hold any of the following investment options in your TFSA:

• Cash
• GICs (Guaranteed Investment Certificates
• Mutual Funds
• Stocks
• Bonds

How much can you contribute?

The TFSA contribution limit for 2024 is $7,000 and the lifetime contribution room is $95,000. You can carry over unused contribution room from previous years provided you were at least 18 years old in 2009, the year TFSAs were introduced by the federal government.

You can find your TFSA contribution room by using CRA’s MyAccount.

Can you over-contribute to a TFSA?

If you exceed your contribution limit, the excess contribution will be subject to a penalty of 1% per month each month the excess remains in the TFSA account.

Talk to a financial advisor

To maximize the benefits of your TFSA contributions and take advantage of the investment earning potential, consider consulting with a financial advisor.

UCU Wealth Strategies Group can help you make informed investment choices. Your advisor will assess your financial situation and work with you to develop an investment strategy tailored to your needs and financial goals.

Information about TFSAs can be found on our website. You can make an appointment with one of our advisors for personalized service.