TFSA (CETI) vs Roth IRA

[August1991]

Same idea.

You declare and put after-tax money in a TFSA. All your gains and dividends are tax free - in Canada, according to the CRA.

Note: The IRS has a different view.

You buy risky Tesla shares - no problem.

Ford dividend shares? I would not use a TFSA to buy a US dividend stock.

Edited October 26, 2024 by August1991

[August1991]

Trump is correct.

How many Americans have not gained?

As a Canadian, what did I lose?

[Aristides]

One thing I am going to ask my financial advisor is if the US is keeping a withholding on earnings from my US investments in my TSFA, why do I have US equities and bonds in my TSFA.

[LinkSoul60]

On 8/14/2025 at 8:02 PM, Aristides said:

One thing I am going to ask my financial advisor is if the US is keeping a withholding on earnings from my US investments in my TSFA, why do I have US equities and bonds in my TSFA.

Trust your financial advisor told you there is no withholding tax on your US equities gains, only on the dividends you may get from any of those equities?

Edited September 3, 2025 by LinkSoul60

[Aristides]

55 minutes ago, LinkSoul60 said:

Trust your financial advisor told you there is no withholding tax on your US equities gains, only on the dividends you may get from any of those equities?

There will be when you sell them.

[LinkSoul60]

6 minutes ago, Aristides said:

There will be when you sell them.

That's not true.  I've been trading US equities in my TFSA for years and am not taxed on capital gains from selling, only dividends I may receive (15% withholding tax).  

 

Capital Gains in a TFSA

• The Canadian Revenue Agency (CRA) does not tax capital gains or any other investment income earned within a TFSA.
• This applies to all investments held in the account, regardless of whether they are Canadian or U.S. stocks, bonds, or other securities. 

U.S. Dividend Withholding Tax 

• While capital gains are not taxed, you may still be subject to a U.S. withholding tax on dividends paid by U.S. stocks held in a TFSA.

[August1991]

On 8/14/2025 at 11:02 PM, Aristides said:

One thing I am going to ask my financial advisor is if the US is keeping a withholding on earnings from my US investments in my TSFA, why do I have US equities and bonds in my TSFA.

I do not have US dividend stocks (or such US ETFs) in my TFSA.

Trump is correct.

Why can't I buy European ETFs? In euros?

[August1991]

On 9/3/2025 at 1:29 PM, LinkSoul60 said:

That's not true.  I've been trading US equities in my TFSA for years and am not taxed on capital gains from selling, only dividends I may receive (15% withholding tax).

 

This is the problem, LinkSoul. The dividends.

====

I suspect that you are a young, day-trader feeling smart, riding on a recent bull market. 

I'm an old buy-hold investor. I've lived through several bears.

As Buffett said, you know who is skinny dipping when the tide goes out.

Edited September 6, 2025 by August1991

[LinkSoul60]

August, why is a US dividend a problem?  There is a withholding tax but all that means is a lesser net dividend. You're generally buying an equity for it's believed share price appreciation anyway, not solely for it's dividend yield.

You would be incorrect in suspecting that I'm a young day trader riding a bull market.  More accurately I'm an older investor who has the majority of our assets being managed by a financial advisor.  I do however manage my and my wife's TFSA's as I've always been interested in and enjoy business/market related subjects, research and actively trading within them to grow their values.  I don't (rarely) day trade but more so swing trade and have a number of long term holds in both Canadian and US equities.  

A TFSA is the absolute best savings vehicle that we have in Canada... financial situation and age depending.  To stay away from a US equity because of a dividend withholding tax makes no sense.  To stay away from US equities in general makes even less sense.... obviously sector and company depending. 

 

[August1991]

On 9/6/2025 at 12:59 PM, LinkSoul60 said:

August, why is a US dividend a problem?  There is a withholding tax but all that means is a lesser net dividend. You're generally buying an equity for it's believed share price appreciation anyway, not solely for it's dividend yield.

You would be incorrect in suspecting that I'm a young day trader riding a bull market.  More accurately I'm an older investor who has the majority of our assets being managed by a financial advisor.  I do however manage my and my wife's TFSA's as I've always been interested in and enjoy business/market related subjects, research and actively trading within them to grow their values.  I don't (rarely) day trade but more so swing trade and have a number of long term holds in both Canadian and US equities.  

A TFSA is the absolute best savings vehicle that we have in Canada... financial situation and age depending.  To stay away from a US equity because of a dividend withholding tax makes no sense.  To stay away from US equities in general makes even less sense.... obviously sector and company depending. 

 

Amazing.

LinkSoul60, you write like someone who knows nothing since 2008.

You write like Wikipedia.

[LinkSoul60]

53 minutes ago, August1991 said:

Amazing.

LinkSoul60, you write like someone who knows nothing since 2008.

You write like Wikipedia.

August1991, your arrogance and opinion of yourself is incredibly ill informed.

[August1991]

52 minutes ago, LinkSoul60 said:

August1991, your arrogance and opinion of yourself is incredibly ill informed.

Whatever.

====

I can predict the reply....

[I am Groot]

The time-honored idea is to put fast-moving stocks into TFSAs, like tech stocks. Because they'll grow the most. TFSAs aren't the place for dividend stocks. My dividend stocks and ETFS are in unregistered accounts to take advantage of the dividend tax credit. If you have US dividend stocks, they belong in an RRSP account. I have the US tech ETF XNTK in my US TFSA account.

[August1991]

On 10/19/2025 at 10:50 AM, I am Groot said:

The time-honored idea is to put fast-moving stocks into TFSAs, like tech stocks. Because they'll grow the most. TFSAs aren't the place for dividend stocks. My dividend stocks and ETFS are in unregistered accounts to take advantage of the dividend tax credit. If you have US dividend stocks, they belong in an RRSP account. I have the US tech ETF XNTK in my US TFSA account.

Fast-moving stocks?

I'm with Charlie and Warren: 1) low fees, 2) avoid taxes

 

[August1991]

There is no tax difference between a TFSA and a RRSP.

Both avoid taxes.

[August1991]

On 9/6/2025 at 12:59 PM, LinkSoul60 said:

August, why is a US dividend a problem?  There is a withholding tax but all that means is a lesser net dividend. You're generally buying an equity for it's believed share price appreciation anyway, not solely for it's dividend yield.

.....

 

It is more problematic.

The US IRS recognizes our RRSP as equivalent to their 401k.

The US IRS does not recognize our TFSA as equivalent to their Roth. Hence, withholding taxes.

===

Mulroney was smart and negotiated the RRSP equivalency.

When Harper created the TFSA, he did not negotiate well with the Americans.

Incidentally, our Canadian RRSP far predates the American 401k. 

[LinkSoul60]

9 hours ago, August1991 said:

It is more problematic.

The US IRS recognizes our RRSP as equivalent to their 401k.

The US IRS does not recognize our TFSA as equivalent to their Roth. Hence, withholding taxes.

===

Mulroney was smart and negotiated the RRSP equivalency.

When Harper created the TFSA, he did not negotiate well with the Americans.

Incidentally, our Canadian RRSP far predates the American 401k. 

It's not problematic at all.  The US government withholds tax on dividends paid by US companies to Canadian citizens, just like the Canadian government withholds the same 15% treaty rate for dividends paid by a Canadian company to a US citizen. It's a lesser dividend about is all it is.

Not following...  RRSP and TFSA are Canadian savings programs, and nothing to do with the US other than RRSP having a limit on foreign content a couple decades ago.

[August1991]

On 5/7/2026 at 1:23 PM, LinkSoul60 said:

It's not problematic at all.  The US government withholds tax on dividends paid by US companies to Canadian citizens, just like the Canadian government withholds the same 15% treaty rate for dividends paid by a Canadian company to a US citizen. It's a lesser dividend about is all it is.

Not following...  

Our RRSP is like their 401k. Our TFSA is like their Roth.

=====

With a TFSA, you pre-pay tax. With a RRSP, you post-pay tax.

For an economist, same difference.

The IRS has a different view.

I put my US investments into my RRSPs. No US into my TFSAs.

[August1991]

On 5/7/2026 at 1:23 PM, LinkSoul60 said:

...

Not following...  RRSP and TFSA are Canadian savings programs, and nothing to do with the US other than RRSP having a limit on foreign content a couple decades ago.

As they say, speak to your financial advisor.