What Is the Contribution Limit for Tax-Free Savings Accounts?

What Is the Contribution Limit for Tax-Free Savings Accounts?

The contribution limit for tax-free savings accounts is $10,000 as of 2015. This savings tool allows Canadians to earn tax-free investment income, states the Canadian government.

The Tax-Free Savings Account is an account in which the contributions of Canadian residents age 18 and older are not taxed, notes the Canadian government. Account owners can withdraw money from the account at any time, without having to pay a fee or a penalty. Unused contributions in any given year are carried forward and individuals can accumulate them over several years. These contributions are not tax-deductible, and the income obtained from withdrawals does not affect one's eligibility for income-tested benefits, including the Canada Child Tax Benefit and the Guaranteed Income Supplement.