One of the most attractive features of contributing to a tax-free savings account is the ability to subsequently withdraw as much money as you want, tax-free, whenever you want, and recontribute the funds withdrawn back to your TFSA, beginning the following calendar year.
This feature makes the TFSA a great savings option for short- or medium-term goals, such as a wedding reception or a new roof. Contribute for a few years, allow the funds to grow unencumbered by tax, withdraw them tax-free to fund your savings goal and then recontribute those funds when available (so long as it’s not the same year as the withdrawal) to enjoy decades of permanent tax-...
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