Full Flexibility to Withdraw and Re-contribute

• Bob is able to save $4,000 a year for 10 years in a TFSA.
• After 10 years of working he comes across a business opportunity and decides to invest.
• Bob withdraws $40,000 of his TFSA savings, tax-free.
• Later, Bob receives a great return on his business investment and decides to re-contribute the $40,000 to his TFSA. He may do so without reducing his other available contribution room.

This entry was posted on Thursday, May 1st, 2008 at 8:09 am and is filed under Tax Free Savings Account Applications. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.