Let’s say you have contributed the maximum amount to your TFSA each year since it became available in 2009 and you have not made any withdrawals.
The current year’s contribution limit is $6,000 and so far this year, you have put $4,000 into your TFSA. If you do not contribute an additional $2,000 this year, $2,000 in contribution room will be added to your annual contribution maximum the following year and will continue to carry forward into future calendar years until you make up the contribution.
The Canada Revenue Agency (CRA) tracks your contribution room and reports this amount through the “My Account” function on the CRA web site (opens in new window).