Debt Consolidation USA Explains Tax-Free Savings Accounts
Los Angeles-Long Beach, CA (PRWEB) November 12, 2014 -- Debt Consolidation USA recently shared in an article published on November 6, 2014, how consumers can take advantage of tax-free savings account for future use. The article titled “Information On Tax-free Savings Accounts” explains some of the most basic account types that consumers can look at to be able to maximize their saving potential.
The article starts off by pointing out that there are a lot of people who are trying to maintain a savings account and are not aware that interest earned is taxable. This means that the interest that accumulates on regular savings has to be declared and taxed just like your salary and other sources of income.
What you want to achieve is to save using tax-free savings accounts so you can save the money that you would otherwise pay for taxes and you get to keep the interest earned on the account. The idea is to be able to identify these tax-free accounts and jump on the opportunity in increasing your funds.
The article starts off with the Roth IRA which provides consumers the ability to save without paying tax on the money in the account. The primary reason for this is that the money is already taxed prior to entering the account. This type of savings account is popular with people who are about to enter retirement but there are short-term uses as well.
Another tax-free account is the Flexible-Spending Account or sometimes called FSAs. This is usually associate with health and child care fees.There are some things consumers needs to know about FSAs particularly that it is sponsored by an employer. It must also be opened with a starting deposit that is usually stated at the beginning of the year and is impossible to change. It is also important to take note that the money in the account must be used within the year or the consumer will lose any unused funds.
To read the article, click this link: http://www.debtconsolidationusa.com/personal-finance/information-tax-free-savings-accounts.html
Adam Tijerina, Debt Consolidation USA, http://www.debtconsolidationusa.com, +1 1-877-610-6990, [email protected]
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