New tax-free saving account

maomeimei

Any one know how this new policy works?

howardxue

How the Tax-Free Savings Account Will Work
% G& O$ P6 n; k7 X  G6 u( k. tStarting in 2009, Canadian residents age 18 or older will be eligible to contribute up to $5,000 annually to a TFSA, with unused room being carried forward.
( `! ^5 ~' }% D$ \; PContributions will not be deductible.
Capital gains and other investment income earned in a TFSA will not be taxed.
Withdrawals will be tax-free.
- l# b. r+ e% V. ~9 }0 ]# Q* h, fNeither income earned within a TFSA nor withdrawals from it will affect eligibility for federal income-tested benefits and credits.
0 m3 W( i# f% I' d1 y* yWithdrawals 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.
9 l# F7 X. i4 QQualified investments include all arm’s-length Registered Retirement Savings Plan (RRSP) qualified investments.
' }! F$ w0 }# r3 XThe $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