Withdrawals made from your TFSA are not taxed and your contribution room will be added back to your TSFA contribution room the following year.
TFSA withdrawals can be done any time of the year. Only contribution limits are tied to the calendar year.
Withdrawals from your Tax-Free Savings Account (TFSA) are not taxed. This means that any funds you take out of your TFSA are not subject to income tax.
In addition, your TFSA contribution room will be replenished by the amount you withdraw, but only in the following calendar year. For example, if you withdraw $5,000 from your TFSA in this calendar year, that $5,000 will be added back to your contribution room in the next calendar year.
Important note: TFSA withdrawals can be made at any time of the year, but contribution limits are based on the calendar year. The available contribution limit for each year is determined by the Canada Revenue Agency (CRA) and can be checked through your CRA MyAccount.
Disclaimer:
*This article does not represent a tax or investment strategy recommendation. You should consult with a tax advisor or financial professional to ensure this is the right move based on your personal financial situation.
**OneVest Management Inc. is a registered Portfolio Manager in each of the provinces and territories of Canada and as an Investment Fund Manager in the provinces of Alberta, Ontario, Newfoundland and Labrador, and Quebec. Assets in your OneVest accounts are held with various custodians, each registered as an investment dealer with the applicable securities regulators. All custodians are members of the Canadian Investment Regulatory Organization (“CIRO”) and the Canadian Investor Protection Fund (“CIPF”). OneVest is a wholly-owned subsidiary of OneVest Technologies Inc. All trademarks are the property of their respective owners. Copyright @ 2024, OneVest Technologies Inc. All rights reserved.