Go to Main Content

Advertisement

By MoneySense Staff on January 1, 2010
Estimated reading time: 1 minute

RRSP Q&A: Will there be a tax hit if I withdraw from a TFSA?

By MoneySense Staff on January 1, 2010
Estimated reading time: 1 minute

This article is 11 years old. Some details may be outdated.

Advertisement

From February 16 to 19, 2010, MoneySense.ca’s top financial planners are answering your RRSP questions. For the full list of questions answered — or to submit a question of your own — click here. I’m 36 years old, single with no dependents and live alone. I have no plans to change this. I currently have two jobs, full time as an office manager, part time as a theatre usher earning a combined total of less than $35,000 a year. I have a TFSA worth approximately $8,000. I’ve been told that as a single person, when it comes time for me to start withdrawing from my TFSA, I could take a huge hit tax wise. Is this true and what is the best thing for me to do to fix this? —Christine9933 Warren Mackenzie and Ken Hawkins: There is no tax paid on money you take out of a TFSA, no matter how large the amount or how much you made while it was in your TFSA. Next question: Should I max out my RRSP contributions or invest some money in something else? Back to main RRSP Q&A page. What do you think? Let us know in the comments.

Comments Cancel reply

Related Articles

A young man is smiles as he considers ways to minimize his capital gains tax

Capital gains tax in Canada, explained

Learn how capital gains are taxed and how to avoid paying more taxes than necessary when selling your assets....

Capital gains tax in Canada, explained

Who pays tax on cash gifts in Canada?

Want to give or loan money to your children? Here are the factors that determine who pays tax in...

Who pays tax on cash gifts in Canada?

Financial Planning

Steve Ambeault, financial advisor

Steve Ambeault is a financial planner based in Edmonton and Calgary. Find out more about his services.

Steve Ambeault, financial advisor

Illustration of bitcoin coins fallling from the sky with parachutes

Canadian Crypto Observer

Has the bitcoin bubble burst?

Bitcoin’s price plummets—should you “buy the dip”? Plus, Canada’s first levered bitcoin and ethereum ETFs are here.

Has the bitcoin bubble burst?

Inflation’s surprise jump could push Bank of Canada to pause rate cuts

Economists say the Bank of Canada will be in a tough spot at its next decision in April as...

Inflation’s surprise jump could push Bank of Canada to pause rate cuts

Two women sit on the floor with laptops researching HISA rates

The best high-interest savings accounts in Canada for 2025

Whether you want the highest interest rate or no service fees, these savings accounts will meet your needs.

The best high-interest savings accounts in Canada for 2025

The best GIC rates in Canada for 2025

Find the best GIC rates in Canada. Plus, everything you need to know about how they work.

The best GIC rates in Canada for 2025

A woman pumps gas into her sedan

What is the Canada Carbon Rebate?

Learn about Canada’s carbon tax, launched in 2019 and ended in 2025.

What is the Canada Carbon Rebate?

A woman using the MoneySense Finder tool at her work-from-home desk

Buying ETFs in Canada Tool: The MoneySense ETF Screener

Which ETFs should you invest in? Which ones best suit your risk tolerance? What about personal ethics? Check out...

Buying ETFs in Canada Tool: The MoneySense ETF Screener

Stock market news for investors: Transat, Empire and Algoma report earnings

The tour company, grocer and steel maker are feeling the effects of U.S. tariffs. Here are the details for...

Stock market news for investors: Transat, Empire and Algoma report earnings