Personal Finance

TFSA - Withdrawal vs. Contribution Room Question

  • Last Updated:
  • May 3rd, 2019 9:09 am
[OP]
Newbie
Nov 3, 2013
37 posts
4 upvotes
Ottawa

TFSA - Withdrawal vs. Contribution Room Question

Because I picked a few lucky stocks, my TFSA balance sits +/- $35,000 above the $63,500 I've contributed.

I may need to (temporarily) take money out to help with a down-payment on a new property until we sell our current home - for a variety of reasons, our current home isn't sold (or even listed) yet, so bridge financing doesn't seem to be a possibility for us. I know that if I take money out this year, I will only regain the contribution room next year, but is the amount capped at the current limit (i.e. $63,500) or is it governed by what I take out.

For example, if I take out $80,000 this year, can I put the $80,000 back next year or only $63,500 because that is the overall contribution limit (to simplify things, I've ignored next year's added contribution room).

I've looked at a few website, but none seem to answer my question.

Thanks!
5 replies
Deal Fanatic
User avatar
Feb 19, 2010
6237 posts
2968 upvotes
NutsMcBalls wrote: Because I picked a few lucky stocks, my TFSA balance sits +/- $35,000 above the $63,500 I've contributed.

I may need to (temporarily) take money out to help with a down-payment on a new property until we sell our current home - for a variety of reasons, our current home isn't sold (or even listed) yet, so bridge financing doesn't seem to be a possibility for us. I know that if I take money out this year, I will only regain the contribution room next year, but is the amount capped at the current limit (i.e. $63,500) or is it governed by what I take out.

For example, if I take out $80,000 this year, can I put the $80,000 back next year or only $63,500 because that is the overall contribution limit (to simplify things, I've ignored next year's added contribution room).

I've looked at a few website, but none seem to answer my question.

Thanks!
I don't believe the bold part. If you had even just searched this site you would have found the answer quite easily.

The answer is the former, not the latter. If you take out $80K you can put it back in next year along with the room generated as of January 1, 2020.
Sr. Member
User avatar
Jul 25, 2018
784 posts
1236 upvotes
Milton, ON
I second @Conquistador. You can put back whatever you withdraw the following calendar year, i.e. if you withdraw $80K this year, you can put back $80K next year + whatever next year's contribution room is.
Deal Addict
Jun 18, 2018
1329 posts
827 upvotes
Toronto
Could look into taking money out of your RRSP to help pay
Deal Guru
User avatar
May 8, 2009
14096 posts
11755 upvotes
Not Leask
Electrah wrote: Could look into taking money out of your RRSP to help pay
How is that better?
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Sr. Member
Oct 11, 2010
968 posts
317 upvotes
Charlottetown
Whatever amount you withdraw can be re-contributed in full the following year no matter what your limit is. If you had 500k you can withdraw 500k and re-contribute 500k + new TFSA room on Jan 1st 2020.

You can grow the size of your TFSA if your investments increase within, but you can also shrink it as well. For example if you had 60k in your TFSA and you lost 30k on an investment you've shrunken your TFSA contribution room because if you withdraw that 30k you can still only put the 30k back in next year + new contribution room. It goes both ways.

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