Investing

Question about withdrawal from TFSA

  • Last Updated:
  • Oct 25th, 2019 12:52 am
[OP]
Newbie
May 13, 2008
16 posts
5 upvotes
Vancouver

Question about withdrawal from TFSA

Hi all investment gurus,

I am just curious about TFSA withdrawal rule, let's make a simple case, TFSA has been around 10 years with a total contribution room of $63,000 (as of 2019), and let's say I have used up the full contribution room each year, and say due to my good investment, I now have $100,000 worth of bonds in my TFSA, so on 2019/12/30, if I withdraw $80,000 worth of bonds from my TFSA account, does it mean I will have $63,000 more contribution room next year, i.e. 2020 ? or I only have $6000 more contribution room? ($6000 is the contribution room of 2019).

Thanks for your insight.

Kind regards,
jeff_yao
2 replies
Deal Addict
User avatar
Nov 18, 2007
3509 posts
605 upvotes
Valleywood
Whatever amount you withdraw in year N can be re-contributed in year N+1 or later. The contribution limit for the year would be in addition to the re-contribution amount, if not already used.

If you take out $80,000 in 2019, that plus $6,000 can be contributed to the TFSA in 2020. The full $86,000 would be a permitted contribution in 2020.
Deal Addict
Dec 22, 2008
2170 posts
969 upvotes
Victoria
If you take our 80k, then that will open up 80k for you next year (plus next year’s allowance). Nothing tricky.

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