#MakeItMakeSense is a weekly series from the Star that breaks down personal finance questions to help young Canadians gain more confidence and understanding around financial literacy.on Tax Free Savings Accounts , The Star received followup questions from readers about withdrawing money from their TFSA accounts to and if they can be utilized for Canadians under the age of 18.to break down more of your questions on TFSAs and give us her tips.
For example, let’s say you had $6,000 in TFSA contribution room and contributed the maximum amount of $6,000 in January 2022. Then, in April 2022, you decided to withdraw the full $6,000 to put toward buying a car. In this case, while you won’t be charged any tax on that withdrawal, you also can’t make any new contributions to your TFSA because you’ve already used up all your available TFSA contribution room for the year, Moorhouse says.
Moorhouse adds that when you make a withdrawal from your TFSA, you get that room back the following year. As an example, if you’ve contributed $81,500 over that past 14 years , and made sure to invest that money, it will grow to $150,000 by August 2022. That same month, you make a withdrawal of $100,000 to put toward a down payment on a home.
If parents have ample TFSA room, they can consider housing their child’s money inside their TFSA account until they’re of age.