Do I pay tax on dividends after I withdraw my fund from a TFSA?

A reader holds a high-yielding income fund inside a maxed-out TFSA and plans to start living off the dividends, which raises a sensible worry about tax. This piece sorts out what happens once money leaves the shelter of a TFSA. Inside the account, growth and income aren't taxed and withdrawals come out tax-free, but the picture changes if a holding is moved out and held in a regular account, where the income it earns from then on becomes taxable. The discussion helps clarify the difference between spending the cash a TFSA produces, which keeps the tax advantage intact, and actually pulling the investment itself out of the shelter. For anyone planning to draw income from a TFSA, it's a useful walk through how to keep the tax-free benefit working while still getting at the money you need.