Tax Free Savings Accounts - 2020 Contribution Limit and more

What is the 2020 TFSA Contribution Limit?

The TFSA new contribution limit for 2020 is $6,000, this is the same amount set for 2019.

Do you want to start a TFSA?

If you don’t have a TFSA yet then total contribution room available in 2020 for someone who has never contributed and has been eligible for the TFSA since its introduction in 2009 is $69,500.

Have you taken withdrawals from your TFSA?

For those clients who have withdrawn from their TFSA and want to know what their limit is now. One thing to keep in mind is the crystallized gains and losses from the withdrawal(s) are factored in to their TFSA room.

Here’s the formula:

Unused TFSA contribution room to date + total withdrawal made in this year + next year’s TFSA dollar limit = TFSA contribution room at the beginning of next year

( Click here to see CRA rules on making or replacing withdrawals)

What is the age I can start a TFSA?

Anyone 18 or older who has a valid social insurance number is eligible to open a TFSA. Contribution room accumulates beginning in the year in which a person turns 18.

Breakdown of the TFSA Annual Dollar Limits by Year

For 2009, 2010, 2011 and 2012:         $5,000

For 2013 and 2014:                             $5,500

For 2015:                                             $10,000

For 2016, 2017, and 2018:                  $5,500

For 2019 and 2020:                             $6,000

Total: $69,500

For Information on

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-Michelle