Cumulative TFSA Contribution Limit

Even though the TFSA has now been available for several years, its potential is still untapped by many Canadians. We are now at the point where cumulative contributions can make a very meaningful component of a retirement strategy. Here are the contribution limits by year:

2009: $5,000
2010: $5,000
2011: $5,000
2012: $5,000
2013: $5,500
2014: $5,500
2015: $10,500
2016: $5,500
2017: $5,500
Total: $52,500

If you have never contributed then you have the capacity to make that total contribution. If you have contributed and then withdrawn funds the withdrawal will add to your contribution room only starting in the next year. Be cautious of this and don’t accidentally over-contribute in a given year by withdrawing money and then attempting to re-contribute in the same year. If you are at or near your limit this can create a temporary over-contribution situation because your increase due to withdrawals is only calculated after brokers, etc. have reported to the government at year-end what your year’s contributions were.