TL;DR:
Track your contribution room, wait until January to re‑contribute withdrawals, avoid over‑contributions, and use CRA My Account to confirm your official limits.

1. Contribution room is limited

Your TFSA has a fixed amount of contribution room each year. If you go over, CRA charges a penalty.

2. Withdrawals are added back next year

Money you withdraw is not added back immediately. It only returns to your room on January 1 of the following year.

3. Over‑contributions are penalized

CRA charges 1% per month on the excess amount until it’s fixed. Even small errors can add up.

4. You can have multiple TFSAs — but one total room

You can open multiple TFSA accounts, but your total contributions across all accounts can’t exceed your room.

5. Transfers are different from withdrawals

If you’re moving money from one TFSA to another, use a direct TFSA‑to‑TFSA transfer to avoid messing up your contribution room.

6. The TFSA is flexible — use it with intention

TFSAs are great for long‑term investing, short‑term savings, or emergency funds. Decide what yours is for so your choices stay consistent.

7. CRA My Account is the official source

Always confirm your official room there, especially if you’ve had withdrawals or multiple accounts.

Common mistakes to avoid

• Re‑contributing withdrawals too early
• Forgetting prior contributions
• Holding too much idle cash long‑term
• Ignoring CRA notices

Your next step

Check your official TFSA room, choose a simple contribution plan, and track it monthly. Small, consistent actions protect you from penalties and build long‑term growth.

Final note: This is education and planning — not financial advice. Always confirm your official TFSA contribution room in CRA My Account.