Transfers between your own TFSAs
If you want to transfer funds from one TFSA to another or from one issuer to another, there will be no tax consequences if your issuer completes a direct transfer on your behalf. For additional information, contact your issuer.
If you withdraw the funds yourself and contribute them to another TFSA, this transaction would not be considered a direct transfer and could have tax consequences.
In this scenario, the funds will be treated as a regular contribution which will reduce your TFSA contribution room for the year. If you do not have sufficient contribution room, you will have over-contributed to your TFSA and will be subject to a 1% tax on the highest excess amount in the month, for each month you are in an excess contribution position.
For an example, see Example - Qualifying transfers between TFSAs of the same individual.
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