The dishwasher stopped halfway through a load of lentil bowls. For three days our kitchen counter looked like the closing shift at a very small restaurant.
I withdrew $2,000 from my TFSA for the repair and a couple of other overdue household bills. I planned to save the money again by December. Putting it back would feel like finishing the repair properly.
Then Camille asked whether I had contribution room left. I showed her my bank balance. She waited.
A withdrawal does not reset this year's room
An ordinary TFSA withdrawal is added back to contribution room on January 1 of the following calendar year. It does not restore room immediately. A same-year replacement therefore needs room that is already available. CRA's withdrawal rules.
For my example, assume I had exactly $500 of unused room before withdrawing $2,000 in 2026, and made no other contributions. The withdrawal leaves my 2026 room at $500. Putting back all $2,000 that December would exceed it by $1,500.
On January 1, 2027, the ordinary $2,000 withdrawal would be added back. That statement does not assume any particular new annual limit for 2027.
Count every account
The number in a CRA account can lag behind recent transactions. I collected my records from both financial institutions and checked contributions, withdrawals and any transfers together. Room belongs to the person, not separately to each TFSA. CRA explains how to calculate available room.
I also learned that moving a TFSA between institutions should be arranged as a direct transfer. Withdrawing it myself and depositing it elsewhere would use contribution room, even if I thought of the transaction as a move.
I left a dated note with my records and kept the replacement money outside the TFSA for now. There was no reward for rushing the transfer before I understood the numbers.
The dishwasher finished its cycle while I was filing the statements. For once, everything that needed drying fitted on the rack.
Canadian TFSA rules checked October 20, 2026. This example assumes Canadian tax residency throughout and an ordinary withdrawal.
