How can I find my TFSA contribution limit?

For 2024, the annual limit is $7,000. If you have contribution room carried over from previous years, you can also use that. To find out how much contribution room you’ve carried over, you can:<ul><li>Call TIPS (Tax Information Phone Service) at 1 (800) 267-6999</li><li>Visit the CRA site and <a href="https://www.canada.ca/en/revenue-agency/services/e-services/e-services-individuals/account-individuals.html" target="_blank" title="https://www.canada.ca/en/revenue-agency/services/e-services/e-services-individuals/account-individuals.html">log in to MyAccount</a></li><li>Request a TFSA Room Statement from the CRA at 1 (800) 959-8281 (to check for hours of service and phone numbers for outside of Canada, <a href="https://www.canada.ca/en/revenue-agency/corporate/contact-information/telephone-numbers.html#h1" target="_blank">visit the CRA site</a>)</li><li>Find it on your last Notice of Assessment from the CRA</li></ul>

Is it better to make a lump sum contribution or regular deposits to my TFSA?

It's often easier to make smaller, regular contributions than it is to come up with a larger lump sum. This is easy to do with a pre-authorized contribution plan (PAC). A PAC automatically withdraws as little as $25 from one of your other Meridian accounts and adds it to your TFSA. In the end though, you can contribute any way you want – just keep an eye on the contribution limit.

How do I add money to a TFSA?

There are three ways to add money your TFSA.<ol><li>Deposit a lump sum</li><li>Use a pre-authorized contribution plan (PAC) to automatically deposit a set amount into your TFSA at certain times.</li><li>Use the Meridian Auto-Save feature to automatically add between $1 to $5 to your TFSA any time you use your debit card or transfer a portion of your pay cheque to your TFSA.</li></ol>

Can I have more than one TFSA?

Yes. You can open as many TFSAs as you want. Just remember not to exceed your contribution limit. Your contribution limit is the same no matter how many different TFSA accounts you have.

What investments can I have in my TFSA?

With Meridian, you can add any combination of the following investments to your TFSA.<ul><li>GICs</li><li>Mutual funds</li><li>Savings accounts</li><li>Bonds</li><li>Stocks</li><li>ETFs</li></ul>

What happens if I exceed the contribution limit?

If you exceed your maximum contribution for the year, you have to pay a penalty to the CRA of 1% per month on the excess amount for as long as it’s in your account.

Are my TFSA contributions tax-deductible?

No. Unlike an RRSP, the funds you contribute to your TFSA are not tax-deductible.

Tax-Free Savings Account (TFSA)

Q: How can I find my TFSA contribution limit?

&lt;p&gt;For 2024, the annual limit is $7,000. If you have contribution room carried over from previous years, you can also use that. To find out how much contribution room you&#x2019;ve carried over, you can:&lt;/p&gt;&lt;ul&gt;&lt;li&gt;&lt;p&gt;Call TIPS (Tax Information Phone Service) at 1 (800) 267-6999&lt;/p&gt;&lt;/li&gt;&lt;li&gt;&lt;p&gt;Visit the CRA site and &lt;a href=&quot;https://www.canada.ca/en/revenue-agency/services/e-services/e-services-individuals/account-individuals.html&quot; target=&quot;_blank&quot; title=&quot;https://www.canada.ca/en/revenue-agency/services/e-services/e-services-individuals/account-individuals.html&quot;&gt;log in to MyAccount&lt;/a&gt;&lt;/p&gt;&lt;/li&gt;&lt;li&gt;&lt;p&gt;Request a TFSA Room Statement from the CRA at 1 (800) 959-8281 (to check for hours of service and phone numbers for outside of Canada, &lt;a href=&quot;https://www.canada.ca/en/revenue-agency/corporate/contact-information/telephone-numbers.html#h1&quot; target=&quot;_blank&quot;&gt;visit the CRA site&lt;/a&gt;)&lt;/p&gt;&lt;/li&gt;&lt;li&gt;&lt;p&gt;Find it on your last Notice of Assessment from the CRA&lt;/p&gt;&lt;/li&gt;&lt;/ul&gt;

Q: Is it better to make a lump sum contribution or regular deposits to my TFSA?

&lt;p&gt;It&#x27;s often easier to make smaller, regular contributions than it is to come up with a larger lump sum. This is easy to do with a pre-authorized contribution plan (PAC). A PAC automatically withdraws as little as $25 from one of your other Meridian accounts and adds it to your TFSA. In the end though, you can contribute any way you want &#x2013; just keep an eye on the contribution limit.&lt;/p&gt;

Q: How do I add money to a TFSA?

&lt;p&gt;There are three ways to add money your TFSA.&lt;/p&gt;&lt;ol&gt;&lt;li&gt;&lt;p&gt;Deposit a lump sum&lt;/p&gt;&lt;/li&gt;&lt;li&gt;&lt;p&gt;Use a pre-authorized contribution plan (PAC) to automatically deposit a set amount into your TFSA at certain times.&lt;/p&gt;&lt;/li&gt;&lt;li&gt;&lt;p&gt;Use the Meridian Auto-Save feature to automatically add between $1 to $5 to your TFSA any time you use your debit card or transfer a portion of your pay cheque to your TFSA.&lt;/p&gt;&lt;/li&gt;&lt;/ol&gt;

Q: Can I have more than one TFSA?

&lt;p&gt;Yes. You can open as many TFSAs as you want. Just remember not to exceed your contribution limit. Your contribution limit is the same no matter how many different TFSA accounts you have.&lt;/p&gt;

Q: What investments can I have in my TFSA?

&lt;p&gt;With Meridian, you can add any combination of the following investments to your TFSA.&lt;/p&gt;&lt;ul&gt;&lt;li&gt;&lt;p&gt;GICs&lt;/p&gt;&lt;/li&gt;&lt;li&gt;&lt;p&gt;Mutual funds&lt;/p&gt;&lt;/li&gt;&lt;li&gt;&lt;p&gt;Savings accounts&lt;/p&gt;&lt;/li&gt;&lt;li&gt;&lt;p&gt;Bonds&lt;/p&gt;&lt;/li&gt;&lt;li&gt;&lt;p&gt;Stocks&lt;/p&gt;&lt;/li&gt;&lt;li&gt;&lt;p&gt;ETFs&lt;/p&gt;&lt;/li&gt;&lt;/ul&gt;

Q: What happens if I exceed the contribution limit?

&lt;p&gt;If you exceed your maximum contribution for the year, you have to pay a penalty to the CRA of 1% per month on the excess amount for as long as it&#x2019;s in your account.&lt;/p&gt;

Q: Are my TFSA contributions tax-deductible?

&lt;p&gt;No. Unlike an RRSP, the funds you contribute to your TFSA are not tax-deductible.&lt;/p&gt;

Tax Free Savings Accounts

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What is a TFSA?

A TFSA is a federally registered savings program open to Canadian residents over the age of 18 with a valid SIN number. The program was developed in 2009 as a way to help people save and grow their money on a tax-free basis.

Unlike RRSPs, contributions to a TFSA are not tax deductible; meaning, contributions don’t reduce your taxable income the way that RRSP contributions do. However, the contributions to your TFSA are tax sheltered, and any income generated in your TFSA grows on a tax-free basis. Additionally, any withdrawals you make from your TFSA are tax free.

What can I use my TFSA for?

You can use your TFSA for anything. It’s one of the most tax-effective ways for Canadians to save, but also one of the most flexible.

Use your TFSA to save for short, medium, or long-term goals. It’s a great way to save for retirement, for a vacation or a major purchase, for your RRSP contributions, or an emergency fund – the possibilities are endless. The underlying benefit, of course, is that income earned on your TFSA investments is not taxed, and you can withdraw your funds when you need to.

Benefits of a TFSA

Tax free growth

You won’t pay tax on any interest, dividends, or capital gains that your investments earn inside your TFSA.

A variety of investment options

Build your TFSA using a variety of investment and savings options – including GICs, mutual funds, and more.

Flexible contributions and withdrawals

Carry forward unused contribution room and make tax-free withdrawals when you need to.

TFSA contribution and withdrawal rules

TFSA contribution limits

For 2024, the annual contribution limit is $7,000. Your total contribution limit, or your “contribution room” is the maximum amount that you can contribute to your TFSA. You can find this information by creating an online account with the Canada Revenue Agency (CRA).

Important: The contribution limit is per person, and not per account. You can have as many TFSA accounts as you like, but your total contributions can’t exceed the limit.

Who can contribute to a TFSA?

Anyone who is a Canadian resident over the age of 18 with a Social Insurance Number (SIN) can contribute to a TFSA. You don’t need to be earning employment income as you would if you wanted to contribute to an RRSP.

If you’re over 18 and you’ve never contributed to a TFSA, you can carry forward any unused contribution room, going back to 2009.

What about unused TFSA contribution room?

Unused contribution room can be carried forward from previous years. If you’ve never contributed to a TFSA and you were over 18 in 2009, you have $95,000 in unused contribution room.

For the cumulative total for all years since 2009 visit the Canada Revenue Agency TFSA page.

TFSA withdrawal rules

You can take money out of your TFSA any time for any reason. When you make withdrawals, you will not be taxed on any of the income earned on your investments. If you make a withdrawal, however, you can’t contribute that amount back the same year. In January of the following year, the amount withdrawn will be added back to your contribution room.

Featured TFSA investing options to grow your savings

18-Month TFSA GIC

Earn guaranteed interest at a great rate over a fairly short term.

3.60%¹

OPEN AN 18-MONTH GIC Learn about the 18-Month GIC

1-Year Cashable TFSA GIC

Get a great rate with access to your money if you need it.

2.75%²

OPEN A 1-YEAR CASHABLE TFSA GIC Learn about the 1-Year Cashable GIC

3-Year Raise the Rate GIC

A great longer-term investment with the option to raise your rate if interest rates go up over the term.

3.20%³

OPEN A RAISE THE RATE GIC Learn about the Raise the Rate GIC

Already a Meridian Member? Simply sign in to open a TFSA savings account or GIC

Types of saving and investing options for your TFSA

Like an RRSP, a TFSA itself isn’t an investment. It’s more of an umbrella account, under which you can hold different types of investments. You can build your TFSA with a variety of investing products, such as GICs, mutual funds, ETFs, stocks and more.

Guaranteed investment certificates

A risk-free way to grow your money. A Guaranteed Investment Certificate (GIC) keeps your principal investment safe and comes with a guaranteed rate of return. Choose from a variety of low-risk investments to build a balanced portfolio.

Explore GICs

High interest savings account

A high interest savings account (or HISA) is a risk-free place to hold funds within your TFSA. In some ways, it functions like a regular savings account that pays you interest on your balance. You can move TFSA savings to a GIC or other types of investments at any time.

Explore the HISA

Three generations; a father, his son, and his grandson out for a hike

Mutual funds

A mutual fund is a collection of investments like stocks, bonds, and other funds. It lets you pool your money together with other investors, making it easier for you to own a more diverse array of investments.

Explore mutual funds

Frequently asked questions

Learn more about TFSAs

Using a TFSA to save for retirement

4 reasons why you should get a TFSA

FHSA vs TFSA vs RRSP: A guide to getting the most from your money

Questions? There are several ways to get in touch

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Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, mutual funds, other securities and cash balances are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions. Mutual funds and other securities are not guaranteed, their values change frequently and past performance may not be repeated.