New tax-free saving account

maomeimei

Any one know how this new policy works?

howardxue

How the Tax-Free Savings Account Will Work
& @" i0 J! ]5 t/ QStarting in 2009, Canadian residents age 18 or older will be eligible to contribute up to $5,000 annually to a TFSA, with unused room being carried forward.
5 U* S4 t4 G: N- yContributions will not be deductible.
- W; @9 L8 F  o3 t" ^3 mCapital gains and other investment income earned in a TFSA will not be taxed.
& e( J1 i5 w4 R% j% m, A2 K2 L2 bWithdrawals will be tax-free.
) z5 F: r7 q" P0 q1 Z+ g4 I: @; PNeither income earned within a TFSA nor withdrawals from it will affect eligibility for federal income-tested benefits and credits.
& O  ?: \3 z6 |+ p1 U$ WWithdrawals 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.
& P: `) q) c, s2 sQualified 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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