Hi, I was just reading about the TFSA (Tax Free Savings Account) to be introduced for 2009. This is a great idea IMHO. Question: Can we, for example, link our TFSA to IB and make trades through this account so that any gains would be tax free? Thank you
It hasn't gone through yet. But you would think the process would involve creating special subaccounts that allow you to put in up to $5k annually and then trade it anyway you like.
The most you can put into your TFSA is $5000 per year. You would most likely need to wait a few years to have a decent base to trade. You could invest that $5000 each year in something safe and watch it grow until that time comes. Linking it to a broker's account may be more difficult, but I know you can invest the money wherever you like and withdraw it all tax-free!
But is it fact that we can trade stocks and futures in a TFSA account? If so, I guess the ability to link to a brokers account such as IB will be provided
Well now. That only took several years to mimic the Roth. I'd expect they will have similar trading restraints as well.