Interactive Study Tool · 6 Accounts · 8 Investment Types · Growth Projector · Notes, Games & Quizzes
📝 Account Study Notes
Comprehensive notes, exam tips, memory aids, and quick-reference facts
⚠️⚠️ Limits shown reflect 2026 values where confirmed. CRA updates contribution limits annually — always verify the latest at canada.ca before filing.
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Canadian Investment Account — 2026
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TFSA
Tax-Free Savings Account
📥 Contribute
After-tax
📈 Growth
Tax-FREE
📤 Withdraw
Tax-FREE
💰 Limit
$7,000/year (2026)
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Overview
The TFSA is Canada's most flexible registered account. Introduced in 2009, it lets Canadians earn investment income — interest, dividends, or capital gains — without ever paying tax on that growth. You contribute with after-tax dollars (no deduction), but everything earned inside is yours to keep forever.
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How It Works — Step by Step
1
Contribute
After-tax dollars. No tax deduction. Room accumulates every January 1 regardless of income — starts at age 18.
2
Invest & Grow
Stocks, ETFs, bonds, GICs and more. All dividends, interest and capital gains inside are 100% tax-sheltered.
3
Withdraw
Any amount, any time, for any reason. Zero tax. Withdrawn amounts restored to your room on January 1 of the following year.
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Quick Reference Facts
Annual limit (2026)$7,000
Cumulative room (2026)~$102,000
Tax deductible?No
Withdrawals taxed?Never
Minimum age18
Income required?No
Affects GIS/OAS?No
Over-contribution penalty1% / month
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Exam Tips & Traps
★TFSA withdrawals do NOT count as income — critical for GIS/OAS clawback questions
★Over-contributing is penalized at 1%/month on the excess
★Non-residents can hold a TFSA but contributions are penalized at 1%/month
★Room begins accumulating at age 18 even if you never open an account
★Cumulative room since 2009 is ~$102,000 for those who were 18+ in 2009
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Memory Aid
Think of the TFSA as a 'Magic Jar' — everything that grows inside it stays yours. Take money out any time; the jar refills next New Year's Day.
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Common Mistakes
✗Re-contributing in the same year you withdrew (over-contribution penalty)
✗Thinking TFSA withdrawals permanently reduce your room
✗Forgetting that non-Canadian-resident contributions are penalized
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Best Candidates
✓Low-to-moderate income earners (no deduction advantage needed)
✓Anyone wanting flexible access to funds at any time
✓Savers concerned about GIS/OAS clawback in retirement