TFSA

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Hello,
I have a hypothetical question about TFSA accounts.

If I have reached my max $75500 in contributions but over the years with good investing my amount in my TFSA was actually $200000. If I took out $100000. How much contribution room would be returned the next year?

Thanks

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Asked on July 7, 2021 7:28 am
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Thank you so basically investing well and can create more room.

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Posted by Dan Kent
Answered on July 7, 2021 3:11 pm
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So, TFSA contribution room is a very easy formula. It is simply your old room, plus your new room, plus any previous year withdrawals.

So in this situation you've made the max contributions, and pulled out $100,000.

Your room the next year would be (assuming $6000 is the 2022 new room)

$6000 (new room) + $0 (old room) + $100,000 (previous years withdrawals for a total of $106,000 in contribution room for 2022.

Hope this helps.

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Posted by Dan Kent
Answered on July 7, 2021 11:58 am
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