FAQ: Why is the Platform Not Pulling From my TFSA to Cover Projected Shortfall?

If you find that your net worth charts has a TFSA accumulating but is also creating a deficit (example shown below) there are two most likely causes.

1. First, if you have a TFSA override the platform will do exactly what that override says (unless it gets “capped” by contribution room or withdrawal limits).

   If this is the case, go to Planning > Projections > Table and open up the TFSA Investment contribution/withdrawal using the “>” arrow. If the values are Red until age 95 then that’s the cause. Remove the override and recalculate the plan. Consider using the TFSA Maximization AI Strategy, it will maximize the TFSA automatically and stop when there is nothing left to draw from but the TFSA.

   
   

2. Second, the TFSA Savings account is a manual account (vs TFSA Investment account). The TFSA Savings account meant for specific goals like emergency fund, home down payment etc. The platform won’t pull from a TFSA Savings account automatically because it’s for a specific purpose.

   If this is the case you will need to either move these funds to a TFSA investment account or create manual overrides from your TFSA savings.