Doing so may have unintended
consequences come tax time.
There are also financial
consequences come tax time.
Not exact matches
As we've seen countless
times over the years,
tax reforms always
come with unintended
consequences that only emerge once
tax payers have had some
time to digest the new rules, adjust their reporting accordingly, and start making the tweaks and refinements that will help them maximize profit and minimize
tax.
The problem with these unintended or unplanned for
tax consequences, is that in non-retirement accounts, you are often faced with a
tax bill that you have not planned for at filing
time, and need to
come up with a check to pay the
taxes due.
Either way, there may be immediate
tax consequences but this will be a one -
time hit, in return for which you will have a larger flow of
tax - free income
coming from your TFSA.
Two caveats being: 1) If a) the purchase you're saving for in 15 years is one that doesn't allow for penalty - free distributions from an IRA, and b) there's a concern that, if you invest the taxable account entirely in equities, there might not be a large enough amount accessible without adverse
tax consequences when that
time comes, you may want to use a more conservative allocation in the taxable account.