2020 contribution limit for self-directed TFSA (Tax-Free Savings Account) is $6,000. Plus, any unused contribution room from previous years is carried forward into this year.
Annual contribution limits for 2009-2020 years
|Year||Annual Contribution Limit|
What is self-directed TFSA (Tax-Free Savings Account) ?
Tax-free savings accounts allows you earn tax free investment income like dividends, interest, and capital gains. Withdrawals from a TFSA are not taxed but contribution to Tax-Free Savings Accounts are not tax deductible unlike RRSP (registered retirement savings plan).
Self-directed TFSA (Tax-Free Savings Account) lets you:
- Grow your investments, tax‑free : capital gains, dividends or interest are not taxed
- Pay no tax on withdrawals: withdraw your money without any fee and tax
- Carry unused contribution room forward into future years: carry unused contribution room forward into future years and amount you withdraw can be re-contributed to your Tax-Free Savings Account the following year or years without impacting your contribution room.
Use self-directed TFSA for tax free investments like stocks (TSX, NASDAQ, NYSE), mutual funds, ETFs, options, fixed income products (bonds, GICs and etc)