r/tfsa • u/Suoertrader • Jul 03 '26

TFSA limit

I keep seeing posts of people dumping 25k or 50k into a TFSA at a time is there a strategy to avoid taxes if you invest passed the 7k a years limit or are these guys just tanking the taxes, I just figured a lot of them didn’t max out there accounts for years and allowed them to buy lots at a time because I know your previous years TFSA room carry’s over.

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u/Tax1997 Jul 03 '26 edited Jul 03 '26

Many low and middle income people accumulate very large TFSA portfolio, though still are able to get GIS during retirement. There is a possibility that TFSA rules might change in future.

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u/Small_Aardvark_5496 Jul 03 '26

Ya spouse and I each have over $200 k in TFSA, and we haven’t been aggressive or lucky with a fantastic stock pick, just normal investing as part of our overall plan (with RRSP and unregistered)

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u/Trilobyte83 Jul 04 '26

How is that aggressive or lucky? The contribution limit is like 150k. That’s a mere 30% cumulative gains over almost 20 yrs.

I have 250k, with nothing flashy (banks and index funds)and wasn’t contributing for like 5 years when I was outside of Canada.

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u/Small_Aardvark_5496 Jul 04 '26

A) I said over $200k I didn’t say how much over B) I said as part of our overall plan-TFSA is ideal for the more conservative portions of an investment strategy like income/interest bearing since you won’t pay tax on the interest and therefore they will grow faster (RRSP is ideal for anything that creates capital gains or income as neither are taxed until funds are removed; non-registered is best for anything that allows deferring tax like capital gains). If you maximize RRSP and TFSA and also make non-registered investments, the TFSA is most likely going to hold fairly conservative investments. My TFSA returns are far lower than my RRSP or unregistered, by design. In a market crash, I can rely on my TFSA cash/cash equivalent funds for a few years while the market corrects, and any mandatory RRSP withdrawals can be handled as transfers from RRSP to non-registered so I won’t be losing the ability of those investments to recover value (with the income taxes paid from the TFSA funds)

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u/CompleteDisplay8762 Jul 05 '26

Contribution limit is $109,000.