If you take money out, you can re-contribute the amount the following year, in addition to the annual maximum and any unused contribution room.
These previous Investing Questions questions may help to provide insight as you move forward:
- “How does a TFSA work?”
- “If I have more than one TFSA can I make the maximum annual contribution to them all in any given year?”
- “Do I have to pay tax when I withdraw money from a TFSA?”
Consult the Canada Revenue Agency’s (CRA) webpage on TFSA contributions for more information or speak to a tax professional. Visit GetSmarterAboutMoney.ca to learn more about TFSAs, RRSPs and other financial topics.