I have a TFSA mutual fund account with TD Canada Trust and am looking to do some re-balancing of funds within this account. I am aware that I can use the "Switch funds" feature to accomplish this.

However, I was wondering if using the switch option will have an impact on my contribution room for the year?

Example: if I switch $1,000 from the Canadian Index-e to European Index-e fund, will that mean that I have used/lost $1,000 of my contribution room? Or, since the funds are staying within the same TFSA, the contribution room stays unaffected?

1 Answer 1


No, you only lose the room for the remainder of the year if you withdraw funds. As long as there are no withdrawals, you're fine.

Note I said "remainder of the year", that's because you'll regain this room at the start of the next calendar year.

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