January 2021: As of January 1st we can add another $6000 to our Tax Free Savings Accounts, and replace any money taken out in previous calendar years. The cumulative TFSA contribution total as of 2021 is now $75,500 (plus growth).
Don’t forget there are a wide variety of investment options available for these tax free savings accounts, including high interest savings accounts for your emergency fund or short term needs. For longer term investments, consider mutual funds, segregated funds, and managed portfolios to provide you with greater tax free growth potential.
If you don’t have cash available, talk to your tax advisor about whether transferring investments from a taxable account to your TFSA makes sense. There may be tax consequences.
