The Tax Free Savings Account is not a substitute and should not be used as an alternative to a Registered Retirement Savings Plan (RRSP). The two types of accounts should be used together to maximize the tax benefits inside of an overall investment portfolio.

Unlike an RRSP there are no tax deduction benefits when you contribute into a TFSA. There are also no tax consequences when you withdraw money from the account. This emphasizes the “tax free” characteristic of this new account.

Also unlike an RRSP, the TFSA does not need to be used specifically for retirement. Therefore, investors should always first invest in their RRSP to maximize tax deductions and save for their retirement. After they have contributed the maximum allowed into their RRSP, the second investment option should be the Tax Free Savings Account; as all gains inside the account are 100% tax free. Finally, once both the RRSP and TFSA have been fully maximized investors should invest in a regular Non Registered Investment Account. All gains earned inside a Non Registered Investment Account are fully taxable.

• Attorney Email Patent Tel

  Michael Kroll is a registered patent attorney who specializes in patents, copyrights, and trademarks.

• Html Help Email

  HTML Email Creator & Sender creates HTML email by a HTML file, and sends the HTML email.

• Aol Email Adress Search

• Adlephia Email

• Active Directory Email Member