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Use this win-win TFSA strategy before Jan. 1 to maximize earnings and grow contribution headroom

The article from The Star discusses a strategic approach to maximize earnings and grow contributions within a Tax-Free Savings Account (TFSA) before the end of the year. It suggests that investors should consider withdrawing funds from their TFSA before January 1, 2024, to take advantage of the new contribution room that will be available in the new year. This strategy involves using the withdrawn amount to invest in assets that could potentially appreciate in value, thereby increasing the overall value of the TFSA. The article explains that by doing this, individuals can benefit from both the tax-free growth of their investments and the ability to re-contribute the withdrawn amount in the future, effectively doubling their investment capacity within the TFSA framework. It also highlights the importance of understanding the timing of contributions and withdrawals to optimize tax benefits and investment growth, especially in light of the annual TFSA contribution limit increase announced for 2024.

Read the Full Toronto Star Article at:
[ https://www.thestar.com/business/personal-finance/use-this-win-win-tfsa-strategy-before-jan-1-to-maximize-earnings-and-grow-contribution/article_f8df7722-ae7f-11ef-b76e-3f6c7e07d7d7.html ]