A TFSA account is also known as a Tax-Free Savings Account and is a brilliant program created by the Canadian government to allow its citizens to save money on the side that is not required to be paid tax over. Some of the most important things that you need to be aware of before opening such an account include:
- The minimum age for opening a TFSA account is 18 years.
- You need to possess a Social Insurance Number, also known as SIN that is valid, in order to be eligible to open a TFSA account.
- TFSAs differ from RRSPs in the sense that the payments for the amounts you contribute to a TFSA are not tax-deductible.
- You can choose different options while opening a TFSA. In might be either an annuity contract, an arrangement in trust or a deposit. You also have the option to set up a self-directed TFSA, that you control and manage yourself, and use to make different kinds of investments.
- All withdrawals, as well as money-made from TFSA, are tax-free.
- Some common reasons to have taxes levied upon your TFSA include:
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- Prohibited or non-qualified investments made to TFSA
- Over contribution
- Contributing inside a TFSA while being a Canadian non-resident
- Tax that is payable on advantages incurred. These may include benefits, loans or debts that you had taken in relation to your TFSA.
These are only a few important things that you need to remember while opening a TFSA. However, there are many more intricate details that you need to be weary of. The best way to ensure that you find no trouble in this regard is to hire the help of a professional. Here at Best Capital Bonds, you will find the assistance and insight that you require to successfully open, manage and make profits from a TFSA. Contact us today to avail our stellar services.
