Good afternoon, I'm Canadian. Are there any US brokerages which offer TSFA accounts? Could save a few bucks in taxes. I searched the site for some info, didnt find much. Thought I would raise the topic. Thanks.
Thanks for the reply Java. Im curious if that would apply to Canadians. Brokerages up here have TSFA accounts. Thanks again.
To be more specific, TFSAs are somewhat analogous to Roth IRAs. One contributes after-tax funds and all appreciation and withdrawals are tax-free. TFSAs are very flexible and can be withdrawn any time without penalty. One also regains the contribution room the following year. Eg. If in 2017, I withdraw $30k for home renovations/travel/crack binge, I can recontribute my $30k withdrawal in 2018. IB offers TFSA accounts. But why do you want a US brokerage?
You also want to avoid holding US dividend paying stocks in a TFSA. The broker will take a 15% withholding tax on dividends and you can't claim a foreign tax credit. This is unlike an RRSP where there is no withholding tax because of the US-Canada tax treaty and for non-registered accounts where you can claim a foreign tax credit.