How to Maximize TFSA Contributions

In your projections, the TFSA annual contribution limit will be indexed to the inflation rate specified in your scenario and rounded to the nearest $500. You can enter a client's unused TFSA contribution room to provide a larger limit than the current year's maximum contribution.

To ensure the maximum contribution to a TFSA account each year you can follow these steps.

1) On the Planning page, click the value in the TFSA Contribution column in the first year that you wish to maximize contributions. 

2) Enter an amount larger than the government-specified maximum contribution such as $25,000. Check the box to Copy down until age XX, enter the desired age, and click the large blue checkmark.

3) Run the scenario. Snap will correct the $25,000 contribution to the maximum allowed contribution for each year and your overrides will be highlighted in yellow. The rest of the cash flow will be allocated according to the default CFM logic.

If you have increased your client's TFSA contribution room, the above method will show larger TFSA contributions. For example, if the client's unused TFSA contribution room is $35,000 and you enter a $25,000 TFSA contribution the entire $25,000 can be contributed the first year. 

Example: Using overrides to continue TFSA contributions in decumulation years

In this example, the TFSA is funded automatically while the client has Employment Income.  However, at retirement, the automatic contributions stop.  Snap Projections will not automatically withdraw more funds from the Non-Registered account to contribute to the TFSA, but you can do this manually using overrides. This example assumes that Snap is following the default order of withdrawals: Non-registered, TFSA, Registered (N,T,R).

Click the $0 in the first year where you want to start the manual TFSA contribution and copy down to the final year of the projections.  You may wish to clear the overrides once the Non-Registered account is depleted (see the year with the black outline below). Otherwise, Snap will continue contributing to the TFSA by withdrawing more from the RRSP.

The pink outline highlights where Snap continues contributing to the TFSA even though there are no other funds to transfer.  The client is in a shortfall situation at this point.  Manual contribution/withdrawal overrides block Snap from withdrawing from that account, even when there is a shortfall.  In the screenshot below, we clear the $10,500 TFSA contribution override in the year the Non-Registered account was depleted. 

Now, the TFSA is contributed to until the Non-registered account is nearly depleted and then withdrawals from the TFSA start to supplement the minimum RRIF withdrawals in the following year.  The shortfall in the final years of the projections has been avoided.


1) The contribution override values will not be automatically updated if you change the inflation rate. You need to repeat the above steps after changing the inflation rate. Similarly, if you change the client's TFSA Contribution room, you will need to repeat the above steps.

2) The same procedure can be used to maximize withdrawals from a LIF. Enter a large negative value under the Contribution column for the LIF, and after running the scenario the software will correct the amount entered to the projected maximum withdrawal.

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