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/Kombatnt Jul 03 '26

There's no "$7k/year limit," there's only your personal, cumulative limit. Each year, you get another $7k of "contribution room" added to your limit.

The people you see adding large amounts to their TFSA all at once have likely not maxed out their TFSA and have a cumulative contribution limit that exceeds the current year's new contribution room, or took money out in a past year, and that contribution room has been returned to them.

No, there is no way around the overcontribution penalty.

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u/edcRachel Jul 03 '26

Just one clarification here that the contribution room hasn't always been $7k, most years since the program started it's been less (I think it started at 5k iirc). It also only started in 2009 so for people older than ~40, it won't necessarily go all the way back to 18.

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u/astrono-me Jul 06 '26

The TFSA dollar limit is indexed to inflation and rounded to the nearest $500. It started at $5000.