TAX FREE SAVINGS ACCOUNTS!


Investing & Money
piece written on the 27th February 2015 by  

With yesterdays budget speech came the announcement of something a lot of us have been waiting for: Tax Free Savings Accounts (TFSA). This is a really great initiative that is going to help the public with saving for retirement.

The tax free savings account is exactly what the name says, you can invest your money in a vehicle and you won’t pay dividend tax, interest or capital gains tax. That’s pretty darn awesome! The only thing you’ll pay is estate duties when you pass away.

Everyone may invest up to R500,000 for their lifetime, with an annual limit of R30,000 which is roughly R2,500 per month. One of the most important things to note is that if you withdraw money from the account you won’t be able to put it back again.

The folks over at JustOneLap put together a nice infographic for all of us:

TFSA_tax_free_savings_account