A new year, a new decade, and a new opportunity to contribute to your TFSA
2020 Annual TFSA Contribution Limit
The annual contribution limit for 2020 is $6,000.
Did you withdraw from your TFSA in 2019 or previous years?
You can withdraw funds from your TFSA tax-free. It is important to know that during the year you withdraw funds from your TFSA, your contribution limit does not increase by the amount you withdrew. You need to wait for the next calendar year for that amount to be added back to your TFSA contribution limit.
It is important to know that the CRA (Canada Revenue Agency) provides rules for the TFSA and the rules may change from one year to another so contact us if you have any questions and we can help.
How much can I contribute?
If you have available contribution room from previous years or if you withdrew from your TFSA in the past, your TFSA contribution limit may be different from the annual limit.
You can check your TFSA contribution limit by visiting My Account on the CRA website (link). It is important to not over contribute as CRA can charge a 1% monthly penalty on contributions over your limit.
Contact us with any questions you have, we can provide you answers.