The original TFSA annual limit was set at $5,000 back in 2009 when the investment account was first created, but it is indexed to inflation each year and rounded to the nearest $500 for the convenience of investors. The exception was 2015, when the TFSA limit was raised to $10,000 for one year before being lowered to $5,500.
A person who has never contributed to a TFSA and was born in 1991 or earlier can have $95,000 of cumulative contribution room as of Jan. 1. 2024.
TFSA contribution limit—2009 to 2025
Investing ideas for your TFSA
TFSAs aren’t just for savings. You can also invest with your TFSA.
Stock selection
Herman VanGenderen has more than $100,000 in his TFSA. He grew his money by focusing on Canadian and international stocks, diversification and dividends. Here’s what you can learn from his nearly perfect TFSA investment strategy. Or if you’re lucky enough to buy during depressed markets like this investor (he has nearly 40% invested in BP stock), the subsequent gains can be significant—and tax-free.
A simple, ETF portfolio
Patti has more than $57,000 spread across 19 locations. Experts give him a simple, two-ETF solution to make sure he’s diversified and making bank in the long term. Here’s another example of someone new to TFSAs, looking for an easy, hassle-free way to start building wealth in an account. Or, if you’re more comfortable with risk, you can go the route of this 31-year-old Toronto cop, who specializes in aggressive, equity index funds.
Out of the box (and not recommended)
There are certain strategies that work for investors—but you shouldn’t try to recreate them. For example, this man suggests buying stocks and holding on to them forever, while experts worry that he is not diversifying enough. And this investor transfers Canadian shares “in-kind” to and from his non-registered account every year, a strategy that seems to work but doesn’t stick around.
Here are the best TFSA funds in Canada right now.
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