What is tfsa?
Also known as: Tax-Free Savings Account
Definition
Educational information only. Last reviewed August 25, 2026.
How it works in Canada
Contribution room began in 2009 for residents aged 18 or older and accrues annually. Withdrawn amounts are added back to contribution room in the following calendar year. Because withdrawals are not income, they do not affect income-tested benefits such as OAS or the Canada Child Benefit.
Example
Someone who withdraws $10,000 in June regains that $10,000 of room on January 1 of the following year, not immediately. Re-contributing in the same year can create an over-contribution penalty.
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Written and reviewed by CanadaGFI.ca Editorial Team
Licensed insurance and financial professionals contributing to CanadaGFI.ca
Published and last reviewed August 25, 2026. Read our editorial policy and disclosures.
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