TFSA 2026: how to use it without making mistakes

The TFSA is still one of the best tools to grow your money. But only if you use it properly.

In 2026, the annual contribution limit remains set at $7,000. If you have been eligible since 2009 and have never contributed, your total available room can reach $109,000. That is a huge opportunity. It can also become a problem if you are not careful.

Here is what really matters. Plain and simple.

1. You have contribution room even if you never opened a TFSA

As soon as you turn 18, your TFSA room starts to accumulate. Many people are entitled to tens of thousands of dollars without realizing it.

2. Withdrawals can be misleading

When you withdraw money from your TFSA, you get that contribution room back. But only the following year. Re-contributing too quickly after a withdrawal can trigger an over-contribution.

3. Over-contributions are expensive

Any excess contribution is penalized at 1 percent per month. A lot of people notice too late, sometimes after months of unnecessary penalties.

4. Do not blindly trust the CRA website

The information is not always up to date, especially at the beginning of the year. Keeping your own records really matters.

This is where guidance makes a real difference. As a financial advisor, I help my clients maximize their TFSA, avoid penalties, and invest in a way that actually supports their goals. That could be savings, retirement, or medium-term projects.

Want to know how much you can safely contribute or how to use your TFSA more effectively?

Book a meeting with Patrick Joseph, financial advisor, and let’s review it together.