Example Recap

Your TFSA contribution limit = $100,000

You contributed $100,000 cash

You invested in stocks, and they grew to $150,000

You sold and withdrew $150,000 from your TFSA

✅ What CRA Rules Say

When you withdraw money from your TFSA, your full withdrawal amount — not just the original contribution — is added back to your contribution room next year.

CRA rule:
“Any withdrawals made from your TFSA in the current year are added to your contribution room at the beginning of the following year.”

💰 So in your case:

If you withdraw $150,000 in 2025:

Year TFSA Action Contribution Room Status
2025 Contributed $100K (limit) → grew to $150K → withdrew $150K You have $0 remaining room for 2025 (you already used it)
2026 The $150K withdrawn in 2025 is added back to your new contribution room You can contribute $150K + 2026’s new TFSA limit (whatever CRA adds that year, e.g. $7,000)
⚠️ Very Important Warning

If you recontribute the $150K in the same year (2025), you will overcontribute, and CRA will charge a 1% per month penalty on the excess amount.

So you must wait until January 1 of the next year to re-deposit the full $150K.