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Test your knowledge
To celebrate the start of your retirement, in 2025 you withdraw $20,000 from your tax-free savings account (TFSA) to take the trip of a lifetime. Since your taxable income is already $85,000, will this result in a clawback of your Old Age Security benefits?
September 24th, 2025
Answer: No
The Old Age Security threshold means that you must repay 15% of your OAS benefits for each dollar of taxable income above a certain amount. The threshold amount for 2025 is $93,454. So you might think that your TFSA withdrawal would raise your taxable income to $105,000, well above the threshold. But – good news! – TFSA withdrawals are not considered to be taxable income. Bon voyage!
To learn more about retirement withdrawal strategies, read this article.
The following sources were used to prepare this article:
Government of Canada, “Tax-Free Savings Account (TFSA), Guide for Individuals.”
