Question 1

What is a TFSA (Tax-Free Savings Account)?

Accepted Answer

A TFSA is a registered account in Canada where investment income — including capital gains, dividends, and interest — is completely tax-free. Contributions are made with after-tax dollars (not tax-deductible), but all growth and withdrawals are tax-free. Any Canadian resident aged 18+ with a valid SIN can open a TFSA.

Question 2

What is the TFSA contribution limit for 2026?

Accepted Answer

The TFSA annual contribution limit for 2026 is $7,000. If you were 18 or older in 2009 and have never contributed, your total cumulative room is $109,000 as of 2026. Unused room carries forward indefinitely, and withdrawals are added back to your room in the following year.

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