Search CRA Making withdrawals Depending on the type of investment held in your TFSA, you can withdraw any amount from the TFSA at any time. Withdrawing funds from your TFSA does not reduce the total amount of contributions you have already made for the year. Replacing withdrawals If you decide to replace or re-contribute all or a portion of your withdrawals into your TFSA in the same year, you can only do so if you have available TFSA contribution room . If you re-contribute but do not have contribution room, you will have over-contributed to your TFSA in the year. You will be subject to a tax equal to 1% of the highest excess TFSA amount in the month, for each month you are in an excess contribution position. See example 1 below. Example 1 In 2009 and 2010, Sarah contributed $5,000 to her TFSA. In 2011, she makes another $5,000 contribution to her TFSA. Later that year, she withdraws $3,000 for a trip. Unfortunately, her plans changed and she cannot go. Since Sarah already contributed the maximum to her TFSA earlier in the year, she has no TFSA contribution room left. If Sarah wishes to re-contribute part or all of the $3,000 she withdrew, she will have to wait until the beginning of 2012 to do so. The $3,000 will be added to her TFSA contribution room at the beginning of 2012. If she re-contributes any of the withdrawn amount before 2012, she will have an excess amount in