Let’s assume you were eligible to open a TFSA when the program started in 2009, but haven’t got around to it yet. You could contribute a total of $88,000 in 2023. That’s a lot of money you can grow tax-free.
You don’t pay any tax or lose federal income-tested benefits and credits when you withdraw from a TFSA. It’s like TFSA withdrawals have the superpower of invisibility.
Also, you don’t lose your contribution room when you withdraw (as you do with an RRSP). You can recontribute the same amount in the following calendar year and continue to build your savings tax-free.
Use the TFSA calculator to estimate how much you need to contribute to reach your short-term or long-term savings goals.
Save for the lifestyle you want in retirement, with tax advantages.
Build long-term financial security for a person with disabilities.
Start spending savings in retirement by turning your RRSP into a RRIF.