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If I sell investments within my TFSA will it affect my contribution room?



Our response:

Tax-Free Savings Accounts (TFSA) have yearly contribution limits and as long as contributions to your TFSA have not exceeded your yearly limits (including any unused contribution room) you are able to control the assets within your TFSA without affecting contribution room, as long as they are considered to be qualified investments.  The money you withdraw can be re-contributed in the following year, in addition to the next year’s annual contribution maximum. Generally, your TFSA contribution room is made up of: the TFSA dollar limit for the year, any unused TFSA contribution room from the previous year, and any withdrawals made from the TFSA in the previous year. If you re-contribute the money in the same year without having available contribution room to do so, you may be charged an over-contribution penalty of 1% per month on the excess amount until you remove it.

Visit to learn about stocks, investing and other topics including, 7 TFSA misconceptions. Speak with a registered financial representative or tax professional for advice.

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