Q&A: TFSA withdrawals

Question: My question relates to TFSA withdrawals. When you withdraw money from your TFSA at 65 and beyond does the Government factor in the amount when calculating any clawbacks on pension income? – Brian C.

Gordon Pape answers: No. TFSA withdrawals are not considered as income (unlike RRSP or RRIF withdrawals). This means they do not affect the Old Age Security clawback nor do they penalize people who qualify for the Guaranteed Income Supplement. This is one reason why these plans are especially suitable for older Canadians.