In this article:
Overview
Here are some key points about TFSA withdrawals:
- You can withdraw funds from your TFSA at any time without penalties.
- The withdrawn amount is added to your contribution room on January 1st of the next calendar year.
- Transferring funds between TFSAs doesn't affect your contribution room. Learn more about transfers.
How withdrawals affect your contribution room
For example, in 2023, you withdrew $5,000 from your TFSA:
- Your 2024 contribution room will increase by $5,000.
- If the annual contribution limit for 2024 is $7,000, your total contribution room for 2024 would be $11,000.
Note: This example assumes you've contributed the maximum amount to your TFSA every year after you turned 18. You can check your contribution room in your Canada Revenue Agency My Account.
Before you withdraw
You must have enough cash available in your account to make a withdrawal.
If you're withdrawing from a self-directed investing account:
- You may need to sell some shares if you don't have enough cash available to withdraw.
- Cash generated from a trade must settle for 1 business day before you can withdraw it.
- There aren't any tax implications for selling stocks in a TFSA.
Withdraw from your TFSA
Follow these steps to withdraw from your TFSA:
- Log in to the Wealthsimple app on your mobile device
- Select an account
- Tap Move money
- Select an account to deposit the funds into
- Tap Next
- Enter an amount to withdraw
- Tap Next
- Review the details and tap Submit
Tip: You can also select the Move tab to make a withdrawal.
- Sign in to your Wealthsimple account
- Select Move money from the Home page
- Choose an account to withdraw from
- Choose an account to deposit the funds to
- Enter an Amount to withdraw
- Select Next
- Review the details and select Submit
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