[HaroldCrump]

You can transfer TFSA-to-TFSA without impacting your contribution room.
Just like RRSP.
Most brokerages allow that, I believe (mine does - E*Trade).

 

[HaroldCrump]

Yes, you can do that.
Don't wait until 31st Dec. - what if your withdrawal is not effective as of that date.
Do it a few days before.
During holiday season banks are slow to process requests anyway.