New tax-free saving account

maomeimei

Any one know how this new policy works?

howardxue

How the Tax-Free Savings Account Will Work
; t6 q; O! V, d& a* D$ qStarting 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.
5 Z( k7 ^) ]- o) X3 `- aContributions will not be deductible.
, ~( D9 h5 f6 w! j6 J, m3 O5 BCapital gains and other investment income earned in a TFSA will not be taxed.
$ u) f% G; g" s3 cWithdrawals will be tax-free.
5 {. N  i- S0 a; ~7 R0 L) O3 L& q: yNeither income earned within a TFSA nor withdrawals from it will affect eligibility for federal income-tested benefits and credits.
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.
; t; ]0 ~6 z! B5 u2 FQualified 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

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