TFSA (Tax-Free Savings Account)

The TFSA launched in 2009. The 2024 contribution limit is $7,000, and total cumulative room for someone who has been 18+ and a Canadian resident since 2009 is $95,000. Unused room carries forward. Withdrawals are tax-free and the amount withdrawn is added back to your contribution room the following January, not the same year (a common over-contribution trap, 1% per month penalty from the CRA). A TFSA is not a savings account, you can hold stocks, ETFs, mutual funds, GICs, and bonds inside it. Use it for long-term equity growth, the tax savings compound the most where returns are highest.