A Tax Free Savings Account (TFSA) can be a great savings tool, whether for retirement, a down payment, vacation, or in an emergency.
The TFSA is very flexible when it comes to withdrawing your money. There is no restriction on when or how much you can withdraw from your account and your withdrawals can be replaced at a later date without reducing your contribution room.
Withdrawing funds from your TFSA does not reduce the total amount of contributions you have already made for the year. However, withdrawals made from your TFSA will only be added back to your TFSA contribution room at the beginning of the following year. This means if you have already contributed the maximum for the year, then withdraw funds in that same year, you won’t be eligible to replace the funds until the beginning of the following year. Be sure you keep this in mind to avoid penalties associated with over-contributing.
Depending on the type of investment or savings account you have for your TFSA, you may be able to withdraw the funds yourself simply by making a transfer to your regular bank account in Online Banking or even at an ATM.
For other types of investments, you may need a little help. Contact your BlueShore advisor or the Solution Centre. We’d be happy to help.