Do you find it difficult to understand the difference between a TFSA savings account and a TFSA Broker account? Well, in this post, I tried to explain exactly that. Please continue to read to discover the exact differences.
In the event that you are currently invested by QuestTD, or whatever the platform, knowledge of difference is really important during your investment journey.
First of all, the recorded (or recorded) account refers to a tax franchise account such as REER or TFSA. Not registered is a normal account, all the benefits you make are subject to taxes (the same goes for capital gains / losses, etc.).
In the event that you currently have an unregistered account at TD (or any other Canadian financial institution) or you are not sure of the account type, you can call them and request them on this subject. Better to be sure of the type of account in which you invest, otherwise you will end up paying taxes. The objective should always be to maximize TFSA and RRSP (depending on your level of income again!), Then to proceed with an unregistered investment account (taxable on gains)
In the event that you currently hold an unregistered account, you can either liquidate, then contribute this money to your quest TFSA or TFSA TD.
Or I think you can also transfer money to your quest as a normal account, then change it to TFSA. Better to confirm this last option. Usually you can do it at other brokers. I hope I am not confused here.
But, one thing is certain, you can certainly transfer the existing shares to an unlissed Questrade account (“Marge”), then move them to a TFSA Questrade. You will always have to pay capital gains on what you transfer to the TFSA because it is a “renowned provision”. However, losses are superficial and cannot be claimed. It may be better to keep actions losing outside the TFSA or sell them, reserve the loss and buy something different in the TFSA (buy the same thing in the TFSA would also make it superficial).
The main advantage is that it will save you the commission to have to sell everything and then buy it again in the TFSA. Especially in a TFSA, you want to keep the costs as low as possible.
Keep in mind, however, that to keep the not registered (or any other) Questrade account open, it must have $ 250 in shares or money or they will likely charge costs to close the account.
TFSA are all Registered accounts, whether it is a simple savings account or an investment broker account. You are trying to transfer an unregistered TD investment account to a TFSA investment account.
The accounts registered have special tax implications. The two largest examples are TFSA where your money increases in tax franchise, and the RSS where your money is taxed when you remove it from the plan.
Please make sure you understand what TFSA are, in particular annual contribution limits and your contribution room (annual changes).
Finally, if you have a TFSA savings account, just make sure everything you transfer to a TFSA investment account does not put you on your contribution limit. Good investment !!
Thank you for reading! Please let me know your thoughts and comments below.
