As of 2021, the lifetime contribution limit to a Tax-Free Savings Account (TFSA) is $75,500. The 2021 contribution limit is $6000. If you did not maximize your contributions, the contribution room carries over to the next year. Also, if you make a withdrawal from your TFSA, that amount is added back on to your contribution limit the following year.

Example – as of 2020, you had contributed $69,500 to your TFSA, and took a withdrawal of $10,000. In 2021, you would be eligible to contribute the annual limit of $6000 plus $10,000 to make up for the withdrawal, for a total of $16,000.

Any increase in the value of your TFSA is tax free, and you won’t pay any taxes on money you withdraw later.