New tax-free saving account

maomeimei

Any one know how this new policy works?

howardxue

How the Tax-Free Savings Account Will Work
Starting in 2009, Canadian residents age 18 or older will be eligible to contribute up to $5,000 annually to a TFSA, with unused room being carried forward.
& z0 m: x# }# i  uContributions will not be deductible.
" ^# Y; ?$ c) g9 }Capital gains and other investment income earned in a TFSA will not be taxed.
$ k) i2 S6 u' a7 u0 GWithdrawals will be tax-free.
( I( p$ R  h( mNeither income earned within a TFSA nor withdrawals from it will affect eligibility for federal income-tested benefits and credits.
" H$ q! i( }: w# P0 L6 Q( ]$ 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.
Qualified 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