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Who doesn't love TFSAs? If one can love an acronym devised by those who write the tax code. TFSAs (Tax Free Savings Accounts for those who are not acronym-writers) are open to any Canadian resident over 18 years old. They allow you to save a good chunk of change every year— and invest it for the future (which you can put to work by turning them into optimized, personalized portfolios of low-fee ETFs). And most alluringly, they let those investments grow tax-free during the life of the account. How could anyone find anything bad to say about the gorgeous, the charming, the tax-advantaged TFSA?????
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Well, anyone who's tried to keep track of how much they've contributed in any given year — and how much more room they have — might find something kind of bad to say. Just take a gander at the CRA’s contribution rules and witness such computational horrors such as: How much contribution room do I have this year if for the past three years I’ve only contributed half of the maximum and this year I withdrew $3,000 as a down payment on a car?
Contribute too little and you're missing out on a great benefit. Contribute more than is allowed and you're liable to incur a fine. Bone chilling, right?
That's why Wealthsimple has designed a tool that keeps track of your yearly contributions — and calculates how much you've got left before you reach your yearly limit. And, like all really great tools, you don't have to do anything to take advantage of it. And provided you have a TFSA with Wealthsimple, you can turn it on in one of two easy ways.
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You can log in to your account and click on your TFSA account page. You'll see a “tracking contributions” options with a button next to it that says “set up.” Just click it. The other way is via the “Funding” tab on your dashboard. After you click on Funding, choose “add funds” and select your TFSA. You will be prompted to set up “tracking contributions.” Either way, we’ll ask you a few minimally-nosy questions — your residence history in Canada, whether you have opened a TFSA elsewhere, etc. Then you're done. No more questions, and you’ll always be able to track exactly how much contribution room you have left.
Even if you set up an automatic monthly deposit, we’ll tell you precisely how much room you have left above your scheduled deposits.
Our not-so-modest prediction: our TFSA Tracking feature is such an amazing innovation it will eventually supersede sliced bread in a certain famous expression about cool stuff.
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