Samantha contributed $6,000 to her TFSA in January 2022. Due to an unexpected expense, she withdrew $3,000 from her TFSA in April 2022. She then wants to re-contribute the $3,000 in October 2022. Assuming she had no unused contribution room prior to the 2022 limit, what is the maximum she can re-contribute in October 2022 without incurring an over-contribution penalty?

Question: Samantha contributed $6,000 to her TFSA in January 2022. Due to an unexpected expense, she withdrew $3,000 from her TFSA in April 2022. She then wants to re-contribute the $3,000 in October 2022. Assuming she had no unused contribution room prior to the 2022 limit, what is the maximum she can re-contribute in October 2022 without incurring an over-contribution penalty?

Answer options: ✅ $0

• $3,000
• $5,000
• $6,000

Correct answer: $0

Explanation: Withdrawals from a TFSA create new contribution room in the next calendar year. Samantha contributed her full $6,000 room for 2022 in January. The $3,000 withdrawal in April does not create re-contribution room until January 1, 2023. Therefore, she has no room left to re-contribute in October 2022 without over-contributing. This is a critical rule for TFSA planning.