How Is TFSA Contribution room determined? Do ALL withdrawals increase the max? | Page 4 | Tax Free Savings Accounts | Discussion forum

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How Is TFSA Contribution room determined? Do ALL withdrawals increase the max?
July 10, 2021
1:08 pm
smayer97
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I'm sorry that you failed to understand the issue But thankfully others on this thread did get it and have supplied the necessary verification to address the scenario presented.

And it did NOT take this entire thread to get to the answer either. It was answered on the 1st page.

The fact that others chose to carry on further, either repeating some info or occasionally adding more info, has nothing to do with me.

July 10, 2021
1:10 pm
Norman1
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Just before Cedric's example, RC4466 says

Withdrawals, excluding qualifying transfers and specified distributions, made from your TFSA in the year will only be added back to your TFSA contribution room at the beginning of the following year.

That mirrors the definition of B of A+B+C-D for calculating TFSA contribution room in the Income Tax Act:

B is the total of all amounts each of which was a distribution made in the preceding calendar year under a TFSA of which the individual was the holder at the time of the distribution, other than a distribution that is

  1. a qualifying transfer, or
  2. a specified distribution,

Both clearly indicate that TFSA withdrawals/distributions, that are not "qualifying transfers" or "specified distributions", are added to the contribution room next year period. No conditions. No limits.

I've seen nothing in the years since TFSA's were introduced, from CRA, financial institutions, or accountants that even remotely suggests that only part of a TFSA withdrawal can be added back to contribution room.

You seem to be describing a relationship between TFSA withdrawals and the annual TFSA dollar limit that is simply not there!

July 10, 2021
1:44 pm
Vatox
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Norman1 is correct. There is no relation between official contribution limit and withdrawals. Keep them totally separate. Any withdrawal amount is eligible to re-contribute in the next calendar year or later and that does not affect your official contribution limit in any way.

July 10, 2021
2:20 pm
Dean
Valhalla Mountains, British Columbia
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smayer97 said
.
. . . Unless I see any other evidence, it seems like mission was accomplished.
.  

Dean said
.
And so it looks like . . .
.


.

    Dean sf-wink

  

Apparently not ❗

Could this be the next 'Never Ending Thread'

LOL sf-laugh

    Dean

sf-cool " Live Long And Prosper " sf-cool

July 10, 2021
2:33 pm
smayer97
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Dean said

Dean said
.
And so it looks like . . .
.


.

    Dean sf-wink

  

Apparently not ❗

Could this be the next 'Never Ending Thread'

LOL sf-laugh

    Dean

  

Looks like some people did not get the memo!

LOL!!!

July 10, 2021
10:36 pm
Vatox
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I never get the memo! I’m never in the loop, LOL

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