Finance & Investment

How does the death of a spouse affect your TFSA contribution room?

TFSA contributions available Room

Canadians aged 18 and over accumulate new Tax-Free Savings Account (TFSA) contribution room each year. Annual TFSA contribution limits have changed several times since the account was launched in 2009. An individual may accumulate a TFSA room amount of up to $102,000.

Year Annual TFSA Limit TFSA cumulative limit
2009 $5,000 $5,000
2010 $5,000 $10,000
2011 $5,000 $15,000
2012 $5,000 $20,000
2013 $5,500 $25,500
2014 $5,500 $31,000
2015 $10,000 $41,000
2016 $5,500 $46,500
2017 $5,500 $52,000
2018 $5,500 $57,500
2019 $6,000 $63,500
2020 $6,000 $69,500
2021 $6,000 $75,500
2022 $6,000 $81,500
2023 $6,500 $88,000
2024 $7,000 $95,000
2025 $7,000 $102,000

In addition to year of birth, TFSA room is affected by several factors. Non-Canadian residents cannot accrue new TFSA rooms. TFSA room adjustments are made based on previous contributions and withdrawals. As you contribute, your remaining TFSA space decreases. Your remaining TFSA space increases when you make withdrawals, but not until the next calendar year.

TFSA Contribution Room Calculator

Use our calculator to find out how much you can donate to a TFSA today.

What happens when you inherit a TFSA?

When you inherit a TFSA, as Roberta did, the impact of contributions to your own TFSA depends on your relationship to the deceased. When your spouse dies, you can deposit his or her TFSA funds into your own account until December 31 of the year following his or her death, without taking up any of your TFSA contribution room.

This rule applies when your spouse names you as their TFSA beneficiary, but even if they don’t, it still applies if you are a beneficiary of their estate.

If you are a non-spousal beneficiary of a TFSA, there is no special treatment for a TFSA inheritance. You can’t add it to your own TFSA, at least not without using your own TFSA room.

Successor holder

If your late husband named you Roberta his heir, you may be able to take over his TFSA. Only a spouse can become a TFSA inheritance holder. If you have your own TFSA, you may still want to consolidate the accounts.

One of the advantages of being an heir is that any income and/or growth received after your spouse dies is considered tax-free. Otherwise, if you are named a beneficiary, the income and growth will be taxed as ordinary income. However, the entire account value can still be transferred to your own TFSA, subject to the same schedule of December 31st of the year following the death.

Confirm your TFSA room

Roberta, you can confirm your TFSA room by contacting the Canada Revenue Agency (CRA). CRA can confirm your TFSA room by phone or using CRA My Account online.

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