How To Avoid Penalties & Taxes On Your TFSA

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While in most cases a TFSA is indeed tax free, if you do not have a good understanding of the intricacies of the account, there are potential taxes & penalties that may arise.

If you avoid overcontributing and do not overtrade within your account, you will likely be fine in regards to penalties. However, when it comes to U.S. withholding tax on your TFSA, that shouldn't necessarily be something you avoid.

While you'll have 15% withheld from the U.S. government on dividends from U.S. companies, that will likely be a small percentage compared to the overall growth of your portfolio. Investing in U.S. stocks is good for diversification, so even if this 15% does scare you off, we suggest to have some investments in U.S. companies in your RRSP or other trading accounts.

If you have any further questions about this video's topic or any financial planning questions in general, I encourage you to find a certified financial planner in your area or book a consultation with us to get your savings plan on track.  You can learn more about our services at https://www.parallelwealth.com/planning
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DISCLAIMER: The videos and opinions on this channel are for informational and educational purposes only and do not constitute investment advice. Adam Bornn is not registered to provide investment advice and as such does not provide recommendations - those looking for investment advice should seek out a registered professional. Adam is not responsible for investment actions taken by viewers and his content should not be used as a basis for investment trades.

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