New tax-free saving account

maomeimei

Any one know how this new policy works?

howardxue

How the Tax-Free Savings Account Will Work
( V7 ^; u0 N) q$ _Starting in 2009, Canadian residents age 18 or older will be eligible to contribute up to $5,000 annually to a TFSA, with unused room being carried forward.
Contributions will not be deductible.
& _4 L; Q1 @% X: JCapital gains and other investment income earned in a TFSA will not be taxed.
Withdrawals will be tax-free.
: A' A' Q- P3 T" e2 BNeither income earned within a TFSA nor withdrawals from it will affect eligibility for federal income-tested benefits and credits.
Withdrawals will create contribution room for future savings.
' M6 s$ d0 S' }( v6 rContributions 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.
: }3 U0 I* T  C* HQualified investments include all arm’s-length Registered Retirement Savings Plan (RRSP) qualified investments.
; L  w3 S- C7 n, a2 F. P2 U  `& yThe $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