New tax-free saving account

maomeimei

Any one know how this new policy works?

howardxue

How the Tax-Free Savings Account Will Work
& d9 I8 L: J6 F, I) Y8 ~Starting in 2009, Canadian residents age 18 or older will be eligible to contribute up to $5,000 annually to a TFSA, with unused room being carried forward.
  N% S# U% ^8 t  I* F) P6 U5 ~Contributions will not be deductible.
Capital gains and other investment income earned in a TFSA will not be taxed.
9 A8 f5 e4 j0 `Withdrawals will be tax-free.
5 S# t/ E9 @: b, a1 ~% w6 l3 lNeither income earned within a TFSA nor withdrawals from it will affect eligibility for federal income-tested benefits and credits.
- b) Y) [3 J0 _1 D0 w' q5 w% ~Withdrawals will create contribution room for future savings.
Contributions to a spouse’s or common-law partner’s TFSA will be allowed, and TFSA assets will be transferable to the TFSA of a spouse or common-law partner upon death.
2 w& K+ h( ^0 wQualified investments include all arm’s-length Registered Retirement Savings Plan (RRSP) qualified investments.
The $5,000 annual contribution limit will be indexed to inflation in $500 increments.

howardxue

http://www.budget.gc.ca/2008/plan/chap3b-eng.asp

maomeimei

It is the interest on the saving account that will be saved, right? Only helps with people who has lots of savings.

阴暗的角落

关注中