Maxing your TFSA is a good problem. It means your tax-free room is fully used. You can still invest, but your next account choice affects taxes and flexibility.
What to do next
- Use RRSP if your tax bracket is high.
- Use FHSA first if buying a first home and eligible.
- Use non-registered account for additional investing.
Important rule
Do not keep contributing once room is maxed. Extra deposits can trigger the 1% monthly overcontribution penalty.
Account order for many Canadians
- TFSA and FHSA (if eligible)
- RRSP (especially higher earners)
- Non-registered account