📘 RC4466 – Tax-Free Savings Account (TFSA), Guide for Individuals

The Canada Revenue Agency’s publication RC4466, titled Tax-Free Savings Account (TFSA), Guide for Individuals, was a detailed guide on how TFSAs work, how to open and manage them, contribution limits, eligible investments, and tax-related rules. However, this specific publication has been cancelled and replaced with updated TFSA guidance directly on the CRA TFSA webpages.

💡 What Was RC4466?

RC4466 was the official TFSA guide for individuals published by the CRA. It explained key aspects of the Canadian Tax-Free Savings Account, including:

  • 🔹 Eligibility and who can open a TFSA.
  • 🔹 How TFSA contribution room is calculated and accumulated.
  • 🔹 What types of investments are permitted inside a TFSA.
  • 🔹 Rules for withdrawals and how they affect future contribution room.
  • 🔹 Tax implications of excess contributions and non-qualified investments. ([turn0search3]; [turn1search2])

As of 11 February 2026, this publication has been officially cancelled and the information is maintained in updated online CRA TFSA resources.

📊 What is a TFSA?

A Tax-Free Savings Account (TFSA) is a registered savings and investment account available to Canadian residents aged 18 or older with a valid Social Insurance Number (SIN). Income earned in a TFSA — including interest, dividends, and capital gains — is generally not taxed, and withdrawals are tax-free. ([turn1search1]; [turn1search20])

📅 Contribution Rules

  • 🔹 Each year the CRA sets an annual TFSA contribution limit. The total TFSA room available includes unused amounts from previous years and amounts withdrawn in prior years. ([turn1search1]; [turn1search12])
  • 🔹 Contributions are NOT tax-deductible — they are made with after-tax dollars.
  • 🔹 Over-contributing beyond your TFSA room leads to penalties (typically 1 % per month on the excess amount). ([turn1search1]; [turn1search12])

📈 Eligible Investments

A TFSA can hold a variety of eligible investments, such as cash, guaranteed investment certificates (GICs), mutual funds, certain bonds and stocks. The list generally aligns with RRSP-eligible investments but excludes real property and certain prohibited items.

🔄 Withdrawals and Re-contributions

Withdrawals from a TFSA are tax-free and do not affect federal benefits or tax credits. Withdrawn amounts are added back to your available contribution room in the following calendar year only — not in the same year that you made the withdrawal. ([turn1search1]; [turn1search12])

👥 TFSA for Non-Residents

Individuals who are not tax residents of Canada but hold a TFSA may still have contribution room, but any contributions made while a non-resident may be subject to a 1 % monthly penalty until withdrawn.

📍 Additional CRA TFSA Resources