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 Some details may be outdated.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

Two young women look at a phone

Fraud and Scams

How to protect your identity

How to protect your identity

A worried young woman checks her tablet

Fraud and Scams

How to protect your passwords from fraud and identity theft

How to protect your passwords from fraud and identity theft

Person sitting on couch with laptop

How to build an advanced couch potato portfolio

Adding unrepresented (or underrepresented) asset classes to a core portfolio can reduce risk, increase returns, or both. Here are...

How to build an advanced couch potato portfolio

A woman works on her laptop while sitting on a couch

How to build a core couch potato portfolio

Three ways for Canadians to create a basic low-fee, low-maintenance investment portfolio, with sample asset-allocation models.

How to build a core couch potato portfolio

A contractor in a hard hat checking his computer and talking on his phone

Fraud and Scams

How to protect your small business from fraud

How to protect your small business from fraud

couple looking at laptop monitor

How to build a couch potato portfolio

The theory and practice behind assembling a do-it-yourself investment account using index funds.

How to build a couch potato portfolio

couple looking at laptop monitor

Updated for 2025: The ultimate couch potato portfolio guide

Should you ditch your advisor and invest in passive index funds? Find out whether couch-potato investing may be right...

Updated for 2025: The ultimate couch potato portfolio guide

People sit outside the TMX Market Centre in Toronto, Wednesday, Sept. 11, 2024.

When markets soar, don’t let FOMO take over

Experts share why chasing stocks at record highs can be risky, and how to build a strategy that keeps...

When markets soar, don’t let FOMO take over

What’s the best way to pay down debt?

Many Canadians are carrying personal debt. Certified Financial Planner Janet Gray explains four effective strategies to get debt under...

What’s the best way to pay down debt?

A couple is seen looking at paper work on a table.

Here’s what a comfortable income looks like in Canada

We examined the cost of living in 79 Canadian cities to come up with an annual income you’d need...

Here’s what a comfortable income looks like in Canada