Comments on: Canadian TFSA Vs American Roth Ira http://www.moneysmartsblog.com/canadian-tfsa-vs-american-roth-ira/ Investing and Personal Finance Sat, 11 Feb 2012 04:38:37 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Fab http://www.moneysmartsblog.com/canadian-tfsa-vs-american-roth-ira/comment-page-1/#comment-59557 Fab Sat, 13 Feb 2010 15:02:31 +0000 http://www.moneysmartsblog.com/?p=574#comment-59557 Hi, Can a canadian perm. resident (living in Canada and using TFSA) and US citizen contribute to its Roth IRA ? Hi,

Can a canadian perm. resident (living in Canada and using TFSA) and US citizen contribute to its Roth IRA ?

]]> By: TexaCan http://www.moneysmartsblog.com/canadian-tfsa-vs-american-roth-ira/comment-page-1/#comment-12070 TexaCan Mon, 23 Mar 2009 21:00:04 +0000 http://www.moneysmartsblog.com/?p=574#comment-12070 Great post. As a Canadian who has been living & working in the US for 9+ years, I have often griped about the lack of Roth-like investment options in Canada. In the US, one has to choose between maintaining a _taxable_ cash "buffer" fund in addition to (or instead of) Roth account contributions. So, I see the flexibility of the TFSA as an improvement over the Roth (IRA & 401(k)) options available in the US. As I see it, the TFSA encourages investing for long-term growth not only by saving taxes on investment, but also by not penalizing early withdrawls to address short-term financial hardship without penalty. Way to go Canada! (FURTHER NOTE: One draw-back of moving back to Canada, is how Roth funds will be taxed. Up until now, there have been no "Roth-equivalent" accounts in Canada. So withdrawls from Roth accounts would be taxed as regular income. (This means a double-tax!) I hop that with the advent of the TFSA, there will now be some "equivalence" rules that will apply for returning Ex-Pats from the US who have Roth accounts. I shall wait and see.) Great post. As a Canadian who has been living & working in the US for 9+ years, I have often griped about the lack of Roth-like investment options in Canada. In the US, one has to choose between maintaining a _taxable_ cash “buffer” fund in addition to (or instead of) Roth account contributions. So, I see the flexibility of the TFSA as an improvement over the Roth (IRA & 401(k)) options available in the US. As I see it, the TFSA encourages investing for long-term growth not only by saving taxes on investment, but also by not penalizing early withdrawls to address short-term financial hardship without penalty. Way to go Canada! (FURTHER NOTE: One draw-back of moving back to Canada, is how Roth funds will be taxed. Up until now, there have been no “Roth-equivalent” accounts in Canada. So withdrawls from Roth accounts would be taxed as regular income. (This means a double-tax!) I hop that with the advent of the TFSA, there will now be some “equivalence” rules that will apply for returning Ex-Pats from the US who have Roth accounts. I shall wait and see.)

]]> By: Steve L http://www.moneysmartsblog.com/canadian-tfsa-vs-american-roth-ira/comment-page-1/#comment-9635 Steve L Sun, 07 Dec 2008 22:52:30 +0000 http://www.moneysmartsblog.com/?p=574#comment-9635 This is AWESOME! The statement "All earnings of any type within the TFSA and Roth IRA are not taxed" brings a tear to my eye! I knew about this benefit in the american ROTH IRA, but now, for this benefit to be available in canada, with better terms.. WOW! That means I can invest in a real estate transaction through my TFSA, cash out profit into the TFSA, then withdraw tax free, for anything. Too good to be true. I must be missing something. Does the TFSA have a minimum investment amount like the ROTH's $100 dollar amount? Who controls and issues the moneys? Thanks, Steve This is AWESOME! The statement “All earnings of any type within the TFSA and Roth IRA are not taxed” brings a tear to my eye! I knew about this benefit in the american ROTH IRA, but now, for this benefit to be available in canada, with better terms.. WOW!
That means I can invest in a real estate transaction through my TFSA, cash out profit into the TFSA, then withdraw tax free, for anything.
Too good to be true. I must be missing something. Does the TFSA have a minimum investment amount like the ROTH’s $100 dollar amount? Who controls and issues the moneys?
Thanks,
Steve

]]> By: Charles in Vancouver http://www.moneysmartsblog.com/canadian-tfsa-vs-american-roth-ira/comment-page-1/#comment-7357 Charles in Vancouver Mon, 11 Aug 2008 17:05:23 +0000 http://www.moneysmartsblog.com/?p=574#comment-7357 I don't remember where I saw the comparison but I believe that (unless you are confident about when your income level or tax rates will be higher or lower) for many investors TFSA and RRSP provide identical results. The difference is that to obtain those results... With TFSA: Invest the after-tax money, period. With RRSP: Invest the after-tax money, get a refund on your tax return, and invest that additional money too. I don’t remember where I saw the comparison but I believe that (unless you are confident about when your income level or tax rates will be higher or lower) for many investors TFSA and RRSP provide identical results. The difference is that to obtain those results…

With TFSA: Invest the after-tax money, period.
With RRSP: Invest the after-tax money, get a refund on your tax return, and invest that additional money too.

]]> By: Four Pillars http://www.moneysmartsblog.com/canadian-tfsa-vs-american-roth-ira/comment-page-1/#comment-7336 Four Pillars Sat, 09 Aug 2008 22:58:08 +0000 http://www.moneysmartsblog.com/?p=574#comment-7336 Assetologist - I disagree - the relative small size of the tfsa contribution room shouldn't change your investment plan. It's just another tool to use. fersure - I would assume that all the discount brokerages are preparing for the TFSA although I haven't heard anything official yet. It will be a loss leader but they have to have it. Mike Assetologist – I disagree – the relative small size of the tfsa contribution room shouldn’t change your investment plan. It’s just another tool to use.

fersure – I would assume that all the discount brokerages are preparing for the TFSA although I haven’t heard anything official yet. It will be a loss leader but they have to have it.

Mike

]]> By: fersure http://www.moneysmartsblog.com/canadian-tfsa-vs-american-roth-ira/comment-page-1/#comment-7335 fersure Sat, 09 Aug 2008 19:20:03 +0000 http://www.moneysmartsblog.com/?p=574#comment-7335 Are there any discount brokers preparing for the TFSA? I know ING Canada is already collecting customer info in preparation of Jan.1 roll-over: however, I haven't seen any other companies offering this service. Is it even worth their while until the minimum reaches $10,000? Are there any discount brokers preparing for the TFSA? I know ING Canada is already collecting customer info in preparation of Jan.1 roll-over: however, I haven’t seen any other companies offering this service. Is it even worth their while until the minimum reaches $10,000?

]]> By: Assetologist http://www.moneysmartsblog.com/canadian-tfsa-vs-american-roth-ira/comment-page-1/#comment-7333 Assetologist Sat, 09 Aug 2008 17:03:51 +0000 http://www.moneysmartsblog.com/?p=574#comment-7333 I still think that the TFSA is a great plan in which to swing for the fences. If one has a few extra bucks and can afford to lose a little (limited to $5000/year) it makes sense to purse the highest Risk (& Reward) investments in a TFS Plan. If you hit a home run or two, not only is the capital gain tax-free but any subsequent withdrawal will leave the equivalent contribution room. The TFSA has many advantages and it will be a valuable tool to those Canadians who choose to use it. I still think that the TFSA is a great plan in which to swing for the fences.

If one has a few extra bucks and can afford to lose a little (limited to $5000/year) it makes sense to purse the highest Risk (& Reward) investments in a TFS Plan.

If you hit a home run or two, not only is the capital gain tax-free but any subsequent withdrawal will leave the equivalent contribution room.

The TFSA has many advantages and it will be a valuable tool to those Canadians who choose to use it.

]]> By: The Financial Blogger | Financial Ramblings http://www.moneysmartsblog.com/canadian-tfsa-vs-american-roth-ira/comment-page-1/#comment-7327 The Financial Blogger | Financial Ramblings Sat, 09 Aug 2008 11:33:17 +0000 http://www.moneysmartsblog.com/?p=574#comment-7327 [...] Pillars makes a great comparison between our TFSA and the US Roth IRA. A great read if you are wondering what is going on in other countries. Then again, our system is [...] [...] Pillars makes a great comparison between our TFSA and the US Roth IRA. A great read if you are wondering what is going on in other countries. Then again, our system is [...]

]]> By: The Financial Blogger | Financial Ramblings http://www.moneysmartsblog.com/canadian-tfsa-vs-american-roth-ira/comment-page-1/#comment-7328 The Financial Blogger | Financial Ramblings Sat, 09 Aug 2008 11:33:17 +0000 http://www.moneysmartsblog.com/?p=574#comment-7328 [...] Pillars makes a great comparison between our TFSA and the US Roth IRA. A great read if you are wondering what is going on in other countries. Then again, our system is [...] [...] Pillars makes a great comparison between our TFSA and the US Roth IRA. A great read if you are wondering what is going on in other countries. Then again, our system is [...]

]]> By: Weekly Dividend Investing Roundup - August 9, 2008 » The Dividend Guy Blog http://www.moneysmartsblog.com/canadian-tfsa-vs-american-roth-ira/comment-page-1/#comment-7325 Weekly Dividend Investing Roundup - August 9, 2008 » The Dividend Guy Blog Sat, 09 Aug 2008 06:18:36 +0000 http://www.moneysmartsblog.com/?p=574#comment-7325 [...] Canadian TFSA Vs American Roth [...] [...] Canadian TFSA Vs American Roth [...]

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