The TFSA dollar limit for 2021 is $6,000 but there is no deadline for making a TFSA contribution. If you have been at least 18 years old and resident in Canada since 2009, you can contribute up to $75,500 in 2021 if you haven’t previously contributed to a TFSA.
Take TFSA withdrawals If you withdraw funds from a TFSA, an equivalent amount of TFSA contribution room will be reinstated in the following calendar year, assuming the withdrawal was not made to correct an over-contribution. Be careful, however, because if you withdraw funds from a TFSA and then re-contribute in the same year without having the necessary contribution room, overcontribution penalties can result. If you wish to transfer funds or securities from one TFSA to another, you should do so by way of a direct transfer, rather than a withdrawal and recontribution, to avoid an overcontribution problem. If you are planning a TFSA withdrawal in early 2022, consider withdrawing the funds by December 31, 2021, so you would not have to wait until 2023 to re-contribute that amount.
