What is a TFSA

Learn about the benefits of investing with tax-free savings accounts (TFSAs).

The TFSA was introduced by the Canadian government in 2009 to help Canadians accumulate wealth by investing and saving on taxes. Canadian residents who are 18 and older with a valid Social Insurance Number (SIN) can easily set up an account.

What to know about TFSA contributions

Your contribution room begins when you turn 18, and any unused room is carried forward indefinitely until you use it.

Here are the TFSA contribution limits for each year since 2009:

What to know about TFSA withdrawals

• With a few exceptions, withdrawals from TFSAs are tax-free and can be made at any time.

• You can also re-contribute the amount you withdrew in the next calendar year.

• For example, if you withdrew $2,000 from a maxed-out TFSA in 2024, in 2025 you would have been able to deposit the $2,000 back to your TFSA along with the newly added yearly contribution room of $7,000 for 2025, for a total of $9,000. Yearly added TFSA contribution varies from year to year.

Investments you can hold in a TFSA

While some think a TFSA is simply a savings account, TFSA are an incredibly versatile investment account. You can build and diversify a portfolio by investing in TFSA-eligible investment products:

• Stocks (both Canadian and international)

• ETFs

• Options

• Mutual funds

• Bonds

• Gold and silver bars

• GICs

• Cash

For a full list of eligible investments, visit  the CRA (opens in a new tab)

Benefits of a Questrade TFSA

• No annual account fee. No opening fees.

• Hold both Canadian and U.S. dollars in the account at the same time.

• Open a TFSA in minutes.

• Contribute to your TFSA quickly and easily online.