Q: I heard that if I contribute $36,500 to my TFSA and it grows to $100,000 and I take it out, I now have $100,000 worth of contribution room. Is that true? —Ryan Toy, Calgary
A: Have you ever seen one of those hatching dinosaur eggs? You put it in a bowl, add water and then watch the dinosaur grow and grow. Even after it dries out the little Triceratops will hold onto its new, expanded size. That’s kind of how your TFSA works. “TFSA withdrawals do in fact get added to your TFSA room in the following year,” says Jason Heath of Objective Financial Partners. “So if your TFSA did grow to $100,000, a $100,000 withdrawal would get added to your TFSA room.” It’s important to note that a withdrawal this year doesn’t get added back to your contribution room until next year. And if you don’t wait before trying to use that room, you could end up in an over-contribution position and get hit with a 1% monthly penalty. Call the CRA to find out how much TFSA contribution room you’ve got, just to be sure. So I answered your question. Now can you answer mine? How on earth did you get your money to grow to $100,000? Did you buy shares in the dinosaur egg company?