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2020 TFSA Limit

For 2020 TFSA annual limit is $6,000. Someone who never contributed to TFSA and is eligible the total contribution limit room is $69,500.

Return on the investment inside the TFSA program is non-taxable when there is gain. Similarly, if there is a loss you can’t claim either.

Unlike RRSP contribution, contribution to TFSA is not deductible on the taxes. You also don’t lose contribution room when you make a withdrawal – you can contribute that amount again to your TFSA the following year or any year after that.

You can have multiple TFSA plans, but the total contribution amount is limited to your maximum contribution room.

If you are in the market to buy a house and need funds for down payment, you can withdraw the funds from the TFSA plan.

Between RRSP and TFSA which is better for you can be found in this article.