TFSA

The TFSA tab plans contributions to and withdrawals from a Tax-Free Savings Account. TFSA withdrawals are not taxed and don’t count as income for OAS or GIS, which makes the TFSA a useful buffer in high-income years.

Set up the TFSA

The balance today and the share held in stocks are on the TFSA tab of the client’s profile. On the strategy’s TFSA tab:

Contributions — the Annual amount added each year until the End Age.
Withdrawals — the Start Age and a rate or amount for the go-go, slow-go and no-go years, set by %, $ or year by year, as on the RRSP tab.

Priya Nair adds $7,000 a year until 58, then draws 4–5% a year.

On this tab, a percentage is taken of each year’s balance, so the withdrawals change as the balance does.

Graham leaves his TFSA to grow until 78.

The Table tab lists Withdrawal, Cumulative and Balance for each age.

The projection does not track contribution room. Keep contributions within the room shown in your CRA account.

Holding off on TFSA withdrawals and drawing first from the RRSP often lowers lifetime tax, while drawing from the TFSA in a year near the OAS clawback threshold or the GIS limit protects those benefits. Try both with Optimize Withdrawal Sequence.