RE:TFSAContribution room for 2020 is $6000, and cumulative room since inception is $69500. there is no audit or other actions if you withdraw money tax free, no matter how often or how much you withdraw. It is completely legal and allowed. In fact, if you withdraw say $2000, your contribution room for the year following withdrawal will allow recontribution of the $2000. All these transactions are tax free, that's the big benefit of the TFSA. If you have money invested and do not have a TFSA, you are missing the greatest tax free gift the government offers you.