Investing

Tax impact of TFSA withdrawals once pensioned ?

  • Last Updated:
  • Jul 22nd, 2019 10:44 am
[OP]
Jr. Member
May 10, 2010
142 posts
66 upvotes

Tax impact of TFSA withdrawals once pensioned ?

Greetings.
Strange question but here I go.

Having just finished paying the mortgage, I have started a TFSA dividend growth ETF, where I contribute bi-weekly what used to go on the mortgage.
Dividends will be reinvested during the accumulation phase. I should max out my contributions within 3 years, then keep it topped up yearly.

I plan to retire in 8 years.
I will be eligible to a modest employer pension of $37K
Canada OAS should be around $7.3K
CPP/QPP should be around $12.6K

So, all in all, my total pension should be around $57K, before RRSP withdrawals.
I am aware of the RRSP withdrawals impact.

While TFSA is, well, tax free, what impact can it have on my income tax report, and then on OAS and other goverment benefits ?
Do those withdrawals appear anywhere upon filing my annual income tax reports ?

Thank you.
2 replies
Sr. Member
Apr 19, 2017
789 posts
592 upvotes
https://www.canada.ca/en/revenue-agency ... edits.html

"You can withdraw money from the TFSA at any time, for any reason, with no tax consequences, and without affecting your eligibility for federal income-tested benefits and credits."
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Deal Fanatic
Feb 15, 2006
8271 posts
2550 upvotes
Toronto
TFSA is tax free. It is RRSP that you need to work out how your withdraw, as it can affect your OAS.

You didn't say if by retiring in 8 years also means you will be 65 then. You can choose to start getting your CPP earlier or later, especially if there is RRSP withdrawls, to see if there may be OAS clawback.

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