Sept 30, 2014 - Canada - Surveys revel that almost 50 percent Canadians make contributions to Tax free savings accounts and the concept is no longer a tax saving financial secret. Yet there is too much confusion and undisclosed or misunderstood aspects about the tax-free savings account (TFSA) that need clarification.
Recently, there have been quite a few incidents where the individual have had too much turmoil dealing with issues related to withdrawal limits, deposits limits and the year on year investment slab. We saw that many people were subject to tax deductions in spite of investing in the tax-free savings accounts. A 70+ woman who barely held a little personal savings in her TFSA was taxed $1200 for wrongful deposits.
A tax-free savings account is not an account per say and any Canadian who is 18 or above can invest through the Tax-free Savings Account. While the investment limits are revised periodically, the present investment limit is $5500.
While you are allowed to make withdrawals from your TFSA you need to keep a clear track of your withdrawals to avoid being penalized. In addition, it needs to be noted that any withdrawals that you make cannot be returned to your TFSA in the same financial year. The same can be deposited in the following year though.
If you are trying to make the most from your savings, will it not be wise to understand what the best investment options are that you have available under the umbrella of the tax-free savings account. One simple rule is all that all the options that you have available for RRSP are available for TFSA as well. However, that is not all and you must discover all your investment options with TFSA.
Right from simple understandings of the difference between a TFSA and an RRSP to much more complex options such as the present day investment strategies, a site that has been dedicatedly educating Canadian personal finance is http://www.TheDollarTimes.com
Get your free investment advisor right by your side and explore how to make your TFSA earn more tax immune income, safety first approach, saving account that yield high interest, high interest GIC options. How to loan out to companies in the form of bonds, hard to ignore mutual funds, investing in an ETF, simplest possible stock markets analysis and investment strategies to put you money to work and strategies to increase your cash on hand for all you need to do is simply visit http://www.TheDollarTimes.com
To get personal advice you can get in touch with The Dollar Times at Admin@TheDollarTimes.comMedia Contact
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