The TSFA, according to Online Reputation Management, is one of the most attractive investment options out there. For some, it seems to be over looked but it shouldn’t be. The TSFA should be highly considered because it shelled so that the government can not tax you when you take out the money. Hence it’s name: the tax free savings account.
The starting age for people to start contributing to a TSFA is 18. As soon as you become legal you can start saving your money. To add, there is not age limit to saving in a TSFA. The limit age for RRSP’s, according to Online Reputation Management Company is 71 whereas the TSFA will and can go until your last day. Next, there is a maximum contribution per year which is five thousand and five hundred dollars. The benefit, unlike RRSP’s is that if you have not contributed in the past, you are allowed to start contributing for everything that you haven’t contributed in a a lump sum. The highest as of last year is just under the equivalent of a 6 year contribution. In an RRSO, that time and money would get lost. The TSFA is a great way to contribute because again, you do not get taxed.
The only way you can get penalized is if you over contribute. Over contribution will be taxed. In other words though, the TSFA helps you make sure you are calculating your money. If you go over you get taxed so it makes you keep track of your money (contributions) which you should be doing anyways. At least if you want to avoid the penalty.
Lastly and among many other benefits of a TSFA, withdrawing money from the contribution plan does not impact andy government or assistance benefits, methods, and programs like kids tax free or old age security or other guaranteed programs by the government and other association. Online Reputation Management knows that for their community members who have a low income, they can not get taxed on anything and it will not affect their supplement programs if their money is in a TSFA.