TFSA Basics


The TFSA is a great vehicle to grow your wealth however must Canadians do not use it to its full potential. The banks seem to promote this product as a savings vehicle. The TFSA is best used as an investment vehicle and not a savings vehicle. Any gains made inside the TFSA are not taxed therefore this vehicle should hold equity investments that fit your risk tolerance and time horizon. Below are some TFSA facts for you to digest.

  • You have to be a Canadian resident
  • You must be age 18 or older
  • Contribution limits
    • From 2009 to 2012, you could contribute up to $5,000 per year to a TFSA.
    • For 2013 and 2014, the annual limit was increased to $5500.
    • For 2015, the limit was again increased to $10,000
    • From 2016 to 2018, the limit went back to $5500 per year
    • From 2019 to 2021, the limit increased to $6000 per year
    • The total cumulative limit is $75,500 (assuming you were age of 18 or older in 2009)


Article By

Peter Simons

Wealth Management Advisor and Insurance Broker
Peter Simons is the CEO and managing director at CPN Financial Services Ltd and an active member of the Ontario College of Teachers.

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