What is TFSA contribution room?

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.

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