Originally Posted by MiroE36
to make this simple, assume it's $5,000 every year (no adjustments) and there is a fixed interest rate of 2% (paid annually). After the first year you will have a balance of 5100. after the second year you will have a balance of 10302. after the third year you will have a balance of 15608.04. If you were withdraw the full amount, you can contribute back 15608.04. The interest you earn adds additional contribution room when withdrawn. However, what you withdraw cannot be put back until the start of the the next year. Thus if you withdraw on January 15th, you cannot put that money back in until January 1st of the next year. Likewise if you withdraw money on December 28th, you cant contribute back until January 1st of the next yer (aka 4 days). So withdrawals should be made cautiously.
Yeah you're right, for some reason I thought you didn't have to wait to put money back in but after looking into it... what you said lol.