TFSA is an acronym for Tax-free Savings Account, which allows Canadians aged 18 and older with a valid social insurance number to make annual contributions, up to a specified limit. Starting from January 1st, 2016, the annual contribution limit for TFSAs has decreased from $10,000 (in 2015) to $5,500. Previous contributions have not been affected therefore the accumulated contribution room through 2016 is $46,500.
Be careful when making contributions as there is a 1% penalty per month on any excess contributions. Remember, money removed this year cannot be re-contributed until next year.
If you have never made any contribution to your TFSA, the maximum amount you can contribute in 2018 is $57,500. ($5,000 for each year from 2009 to 2012; $5,500 for each of 2013 and 2014; $10,000 for 2015 and $5,500 for each of 2016, 2017 and 2018.)
For more information regarding TFSAs, please refer to the CRA website on the topic: http://www.cra-arc.gc.ca/tfsa/
If you have any questions or feel that this might impact you feel free to contact us.