Tfsa Contribution Room Withdrawal

You will be subject to a tax equal to 1 of the highest excess tfsa amount in the.

Tfsa contribution room withdrawal.

Your contribution room accumulates each year in which you are 18 years of age and a resident of canada even if you don t file an income tax return or open a tfsa. The annual tfsa dollar limit for the years 2013 and 2014 was 5 500. Withdrawals will be added to your tfsa contribution room at the beginning of the following year. If you withdraw the entire 90 000 in 2019 your contribution room for 2020 will be 90 000 plus the annual tfsa limit for the year 2020.

When you withdraw on the other hand that same dollar amount is added on top of your annual contribution room for the next calendar year. You can contribute up to your tfsa contribution room. If you decide to replace or re contribute all or a portion of your withdrawals into your tfsa in the same year you can only do so if you have available tfsa contribution room if you re contribute but do not have contribution room you will have over contributed to your tfsa in the year. All contributions made during the year to your tfsa including the re contribution of withdrawals count against your contribution room.

For example assuming you have invested your total contribution room of 63 500 tfsa contribution room from 2009 to 2019 in your tfsa over the years and your portfolio has now grown to 90 000 in 2019. You can replace the amount of the withdrawal in the same year only if you have available tfsa contribution room. The annual tfsa dollar limit for the year 2015 was 10 000. You will accumulate tfsa contribution room for each year even if you do not file an income tax and benefit return or open a tfsa.

The annual tfsa dollar limit for the years 2016 to 2018 was 5 500.