Canadian residents aged 18 and over may contribute $7,000.00 per year to a TFSA.
Contributions to TFSAs are not deductible for income tax purposes, but investment income grows tax-free. Additionally, income and capital gains withdrawals are not subject to taxation.
Unused TFSA contribution room may be carried forward to future years.
Excess contributions are subject to a 1% tax every month.
How much can you withdraw?
You can withdraw funds from the TFSA at any time for any purpose.
When you withdraw funds from your TFSA, you can deposit them again without ever reducing your contribution room. However, these funds cannot be deposited back within the same calendar year unless you have not exceeded your contribution room.
Neither income earned in a TFSA nor withdrawals will affect your eligibility for federal income-tested benefits and credits.
Upon death, assets held in a TFSA may be transferred to the spouse and remain exempt.
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