Because of the awesome tax-sheltered benefits that are offered by TFSAs (read more on that here), the government sets a limit to how much you contribute to TFSAs. All TFSA contributions made during the year, including the re-contribution of withdrawals made from a TFSA, will count against your contribution room. If you exceed the contribution limit (even if accidentally), you could receive a tax penalty from the Canadian Revenue Agency (CRA). Learn more about that what happens if you over-contribute.
Tax-free Savings Account (TFSA)
- What is TFSA contribution room?
- How do I start accumulating contribution room for my TFSA?
- What happens to my TFSA contribution room when I make a withdrawal?
- What happens if I've over contributed into my TFSA?
- How do I find out what my TFSA contribution room is?
- How much can I contribute to my TFSA?
- How do I withdraw from my TFSA?
- Can I have a joint TFSA?