One mechanism in the design of the TFSA is the carry-over aspect. Any unused space under the annual $5,000 cap limit can be carried forward to subsequent years, without any upward limit.
Additional meaning of Tax-Free Savings Account:
TFSA is an investment option for Canadian residents 18 years and older wanting to save for the future. The TFSAs’ flexible structure allows the holder to be able to withdraw money from the account at any time, free of taxes. The allocations into the account are non-deductible; however this represents a lucrative opportunity for individuals with left-over income to invest in a savings vehicle, without the pressure of time constraints. The account also alleviates the burden of the capital gains tax. The interest-income will be able to compound tax-free. In essence, the account-holder can withdraw any amount out of the account, free from capital gains and/or withdrawal taxes.