The Tax-Free Investment Account (TFIA)
The TFIA Program has just been approved in the state of Pennsylvania
To see if you qualify, take our free assessment below.
What Is a TFIA?
A Tax-Free Investment Account ( TFIA ) is an account used to replace or supplement your current 401(k) in a way that is more beneficial to you and your needs.
Most Americans use Title 26 Section 401(k) to save for retirement. However, the problem with that is:
- You have to pay taxes (upfront or at the end—either way you will be taxed heavily)
- Your money is not liquid (you can’t access your money any time you want, and if you do, you’re fiscally penalized)
- You are limited to how much you invest (plans with most tax benefits have funding limits).
- Your money is not guaranteed (the money in your 401(k) or IRA soars with the market, and goes down with the market).
- You are required to report your earnings to the IRS (everything in a 401(k) or IRA is, Uncle Sam’s business.)
Use our free assessment
Complete our quick assessment above to discover your options.
Use our free assessment
Complete our quick assessment above to discover your options.
We'll simplify the process
We'll handle all the heavy lifting with your TFIA. If you're happy, we're happy.
Frequently Asked Questions
A.) Tax-Free Investment Account v.s Tax-Deferred Investment Account?
Tax-Deferred Accounts like a 401(k) or an IRA is NOT Tax-Free. You have to pay taxes upfront or at the end but either way, you will be taxed heavily.
On the other hand, a TFIA is completely Tax-Free if set up correctly.
Under the current IRS tax code, the interest and earnings you make inside this account are not classified as "income". Basically, it's tax-free income.
Other difference includes guaranteed growth, capital protection investment liquidity and many more benefits depending on the qualified individual.
B.) Why hasn’t my financial advisor ever told me about this?
Most financial advisors recommend financial commission-based vehicles that their company tells them to.
Some don’t know that an account like this exists. Even if they do, they know how to set it up to be legally tax-free for the account holder.
As a result, more than half the population has a taxable 401(k) or similar tax-deferred retirement account.
C.) What are the requirements to qualify for a TFIA?
Most people think that only the super-wealthy is qualified for a TFIA. That's not always true.
Aside from wealth, there are other requirements that the IRS would look at including but not limited to: Employment status, source of income, current investment strategies and etc. To see if you qualify for a TFIA, get in touch with us and book a FREE consultation.
D.) Is a Tax-Free Investment Account only available to the super-rich?
In short, the TFIA is not just available to the super-rich.
However, under the current IRS tax code, to qualify for such an account is not an easy process.
An account like this can only be technically set up if you're qualified.
To see if you qualify for a TFRA, get in touch with us and book a FREE consultation.
F.) How much do you guys charge?
Our goal is to provide affordable tax-free investing & retirement solution services to help Americans protect their future. Our consultations are FREE of charge.
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Advantages & Disadvantages
A TFIA is a common way to save for a Tax-Free retirement. It's important to understand what this could mean for your retirement, so here are a few advantages and disadvantages.
Advantages
Tax-free capital growth - under the current IRS tax code, you don't have to pay tax with a Tax-Free Investment Account (TFIA), if set up correctly. All earnings made from this account are not classified as "income" and are not required to report earnings. Hence, the growth of such an account is also tax-free.
Capital Liquidity - The investment in this account is liquid. If structured properly, a qualified individual can withdraw any amount at any time without penalty. Unlike a traditional 401(k) where you get fiscally penalized.
Guaranteed capital growth - Your interest rate is guaranteed in a TFIA. Your money grows at the same yearly rate as when you opened your account, meaning even when the market underperforms in the future, your investment is protected.
Proven historical performance - Historically, qualified individuals earned 5-8% a year. Compare to a regular bank account, you earn 30-40 times more in interest.
No funding limits - with a traditional 401(k) account, you are limited to how much you invest. Plans with most tax benefits have funding limits. There's no such limit in a TFIA
Disadvantages
Not easy to set up - Most people don't know how to properly set up a Tax-Free Investment Account (TFIA) to be legally tax-free for the account holder. As a result, less than 0.07% of Americans have what we call a "TFIA" set up—while more than half the population has a taxable 401(k) or similar tax-deferred retirement account.
Difficult qualification process - The TFIA is not just available to the wealthy. However, under the current IRS tax code, to qualify for such an account is not an easy process. An account like this can only be technically set up if you're qualified. When in doubt, please seek professional help.
This list is not exhaustive but encompasses the main advantages and disadvantages of a TFIA.
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