The TFSA new contribution limit for 2020 is $6,000, matching the amount set for 2019. The total contribution room available in 2020, for someone who has never contributed and has been eligible for the TFSA since its introduction in 2009 is $69,500.
The annual TFSA dollar limit is indexed to inflation and rounded to the nearest $500. The Canada Revenue Agency’s indexation increase for 2020 is 1.9%.
For anyone who has withdrawn from TFSAs, their crystallized gains and losses from withdrawals are factored in to their TFSA room. Here’s the formula: Unused TFSA contribution room to date + total withdrawal made in this year + next year’s TFSA dollar limit = TFSA contribution room at the beginning of next year.
Anyone 18 or older and who has a valid social insurance number is eligible to open a TFSA and contribution room accumulates beginning in the year in which a person turns 18.