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By Jason Heath, CFP on January 6, 2025
Estimated reading time: 4 minutes

By Jason Heath, CFP on January 6, 2025
Estimated reading time: 4 minutes

A tax-free savings account inherited from a spouse is subject to special treatment. Here’s how it may impact the surviving spouse’s TFSA contribution room.

If the maximum I can have in my TFSA by 2024 is $95,000, and my late husband’s TFSA funds are added, how is the new amount regarded?

—Roberta

Sorry for your loss, Roberta. There’s not a simple answer to your question, so I will try to explain the considerations.

Canadians aged 18 and older accumulate new tax-free savings account (TFSA) contribution room every year. The annual TFSA contribution limit has changed many times since the account was introduced in 2009. As of January 1, 2025, an individual born in 1991 or earlier (who was 18 years or older in 2009) who has never contributed to a TFSA may have as much as $102,000 of cumulative TFSA room.

In addition to year of birth, TFSA room is impacted by a couple of factors. Non-residents of Canada do not accumulate new TFSA room. And TFSA room adjustments are made based on prior contributions and withdrawals. When you contribute, your remaining TFSA room decreases. When you withdraw, your........

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