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How to Track Your TFSA Contribution Room

Learn who can open a TFSA, how to manage contribution room, and how to avoid common mistakes.

The Tax-Free Savings Account (TFSA) is one of Canada’s most versatile financial tools. It supports everything from saving for emergencies to long-term investing, all with the benefit of tax-free growth. But to use it confidently, you need to understand how your contribution room works—and how to keep track of it over time.

Whether you’ve just become eligible or have held a TFSA for years, staying informed about your available room helps you avoid costly over-contributions and make the most of every dollar you invest.

This becomes especially important when you withdraw funds, open additional accounts at different institutions, or automate your savings. Even well-intentioned strategies can lead to confusion if your contribution room isn’t carefully monitored.

Who Can Open a TFSA?

Opening a TFSA is relatively simple, but eligibility often raises questions—especially for younger Canadians or newcomers.

To open a TFSA, you must:

  • Be a resident of Canada for tax purposes.

  • Be at least 18 years old (some provinces require you to be 19 to open an account, but federal eligibility starts at 18).

  • Have a valid Social Insurance Number (SIN).

Unlike other registered accounts such as RRSPs, there is no upper age limit for contributing to a TFSA. That makes it a valuable planning tool across your entire financial journey—from building your first savings cushion to managing income in retirement.

How TFSA Contribution Room Accumulates

Your TFSA contribution room is the total amount you're allowed to contribute across all your TFSA accounts combined. This room builds gradually over time and is determined by three main factors:

Contribution Room Factor How It Works
Annual Contribution Limits Set by the federal government; added each calendar year once eligible, even if you don’t contribute.
Unused Room Carries Forward Any unused room from previous years rolls forward indefinitely.
Withdrawals Increase Future Room Withdrawn amounts are added back to your room the following year.

This last point is a frequent source of confusion. Many people mistakenly believe they can re-contribute the same amount within the same year. Doing so too soon can trigger over-contribution penalties, even if the withdrawal was made in good faith.

How to Check Your Contribution Room

Because TFSA contribution limits accumulate over time and apply to all your TFSA accounts combined, it’s important to know your current available room before adding funds.

Here’s how you can keep track:

CRA My Account Portal

The Canada Revenue Agency provides an online portal that shows your available TFSA contribution room based on information reported by financial institutions. This is one of the most accessible and reliable ways to check your balance.

Be aware that the CRA updates this information annually. If you’ve made recent contributions or withdrawals, those changes may not yet be reflected. That’s why the next step is just as important.

Maintain Personal Records

It’s a good habit to keep your own record of contributions and withdrawals, especially if you:

  • Use multiple TFSA accounts across different banks or institutions.

  • Withdraw and recontribute in different calendar years.

  • Set up automatic monthly or annual contributions.

By tracking this yourself, you can avoid relying solely on CRA data, which may lag behind real-time activity.

Review Your Notice of Assessment

Your annual tax notice from the CRA includes a summary of your TFSA contribution room. This can be another helpful way to double-check your available space, especially if you’ve made changes throughout the year.

Common Mistakes to Watch For

TFSAs are flexible, but their contribution rules aren’t always intuitive. Even careful savers can make errors. These are the most frequent missteps:

Re-Contributing Too Soon After a Withdrawal

If you withdraw from your TFSA in July, you cannot re-contribute that amount until January of the next year. Adding it back too early creates an over-contribution—even though the funds came from the account originally.

Overlooking Multiple TFSA Accounts

It’s not uncommon to have more than one TFSA account. But each institution tracks only what you’ve contributed with them, not your overall room. That’s up to you to manage.

Assuming Investment Growth Affects Contribution Room

Investment gains inside your TFSA do not reduce your available room, nor do they increase it. Your room is calculated based on contributions and withdrawals—not performance.

How Optimize Helps You Stay On Track

At Optimize, we integrate TFSA contributions into your broader financial plan, helping you use this account effectively and without stress. We support you by:

  • Tracking cumulative contributions and withdrawals over time.

  • Advising on the timing of re-contributions after withdrawals.

  • Helping you decide when TFSA contributions make more sense than other registered accounts like RRSPs.

  • Monitoring your activity if you have multiple TFSAs or complex investment strategies.

Our goal is to ensure your TFSA strategy is not only compliant, but also aligned with your goals—whether you’re saving for a major life event, building an emergency reserve, or investing for the long term.