Unlike other registered accounts, there are no limitations to withdrawing funds from a TFSA. However, it is important to note that once you make a withdrawal, you will not re-gain your contribution room until January 1st of the following calendar year.
Example
You contributed the maximum amount to your TFSA every year after you turned 18 until 2018. Then in March 2018, you decided to withdraw $10,000. The normal annual contribution maximum would have been $6,000 in 2019, but because you withdrew funds in 2018 your actual contribution room for 2019 would be $16,000 ($6,000 + $10,000).
Keep in mind:
- In order to withdraw from your TFSA, you must first make sure that you have enough cash available in your account to do so.
- Cash generated from a trade must settle for 2 business days before it can be withdrawn.
When you're ready to withdraw funds from your TFSA, you can set up a withdrawal through your account.
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