2025 TFSA Contribution Limit for Canadians: What You Need to Know
The Tax-Free Savings Account (TFSA) is one of the most versatile and beneficial investment tools available to Canadians. It allows you to grow your investments tax-free and provides incredible flexibility for saving toward your financial goals. For 2025, the Canada Revenue Agency (CRA) has just announced an annual contribution limit matching the previous year at $7,000, offering Canadians even more opportunity to build their wealth. Here’s everything you need to know about the TFSA for 2025 and how Advanced MIC can complement your investment strategy.
Advanced MIC offers an alternative investment option that helps mitigate risk through minimal correlation to public markets, delivering genuine diversification to your portfolio. Reach out to us today to explore if Advanced MIC is the right fit for your investment goals.
2025 TFSA Contribution Limit
The CRA has set the 2025 TFSA contribution limit at $7,000. This increase allows Canadians to save more while benefiting from tax-free growth on investments.
Lifetime Contribution Limit Since 2009
The TFSA was introduced in 2009 with an initial annual contribution limit of $5,000. Over the years, the annual limits have fluctuated, and as of 2025, the cumulative lifetime contribution room will be $102,000 for anyone who has been eligible since the account’s inception. If you’ve never contributed to a TFSA and have been a resident of Canada since 2009, you can contribute up to this lifetime limit.
Withdrawing from a TFSA
One of the most attractive features of a TFSA is the flexibility it offers for withdrawals. Any funds you withdraw are not considered taxable income and can be re-contributed starting the following calendar year without affecting your contribution room. For example, if you withdraw $10,000 in 2025, your contribution room will increase by $10,000 in 2026.
Understanding Over-Contribution Penalties
Over-contributing to your TFSA can result in penalties. The CRA imposes a 1% tax per month on the excess amount until it is withdrawn. To avoid this, track your contributions carefully and consult the CRA’s My Account service to monitor your available room.
Advanced MIC: A Smart Choice for Your TFSA Investments
Advanced MIC offers an excellentor Canadians looking to diversify their investments beyond traditional public markets. By investing in residential mortgages, Advanced MIC allows TFSA holders to align their investments with the growing demand for housing in Canada while enjoying steady returns.
Why Consider Advanced MIC for Your TFSA?
- Stable Returns: Residential mortgage investments have historically provided consistent and reliable returns, making them a great fit for tax-free growth within a TFSA.
- Portfolio Diversification: Unlike the stock market, mortgage investments are less affected by market volatility, offering stability in uncertain times.
- Impactful Investing: Advanced MIC helps meet the demand for housing by supporting residential mortgages, contributing to Canada’s housing market sustainability.
- Tax-Free Growth: Combining Advanced MIC’s steady returns with your TFSA’s tax advantages can accelerate your path to financial freedom.
Getting Started with Advanced MIC
If you’re ready to take your TFSA to the next level, Advanced MIC makes it easy to invest. Whether you’re a seasoned investor or just beginning your financial journey, our team can help you navigate the process and find the right mortgage investment opportunities to meet your goals.
Contact us today to learn more about how Advanced MIC can complement your TFSA strategy and help you achieve long-term financial success.
Make 2025 the year you maximize your TFSA and explore innovative ways to grow your wealth with Advanced MIC.
Contact us to invest.
Disclaimer: This document does not constitute an offering of securities. The securities are offered exclusively through an Offering Memorandum provided by Advanced Capital Corporation, a registered dealer, in compliance with applicable securities laws. The information contained in this summary is incomplete and is provided for informational purposes only. The financial returns discussed herein are target projections and may not accurately predict future performance. Investors are encouraged to review the full Offering Memorandum and consult with a financial advisor before making any investment decisions.
