The cumulative contribution limit refers to the total amount you can contribute to your savings account, encompassing more than just the yearly limit. It combines the annual contribution limits and any unused contribution room from previous years.
In accounts like a TFSA or RRSP, your unused contribution room carries forward and adds up each year. For example, if last year’s TFSA limit was $6,000 and you didn’t contribute, and this year’s limit is $7,000, your cumulative contribution room is now $13,000. This means you don’t lose the ability to contribute if you skip a year; you can make up for it in the future whenever you’re ready.
