New tax-free saving account

maomeimei

Any one know how this new policy works?

howardxue

How the Tax-Free Savings Account Will Work
; ]. g8 F& U) ?0 P4 |9 ]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.
* [5 l; O- ]7 @8 Q0 FContributions will not be deductible.
* n0 V9 J. t. h/ S. \( \0 rCapital gains and other investment income earned in a TFSA will not be taxed.
Withdrawals will be tax-free.
" A7 X2 \- e+ Z( A+ \4 |. TNeither income earned within a TFSA nor withdrawals from it will affect eligibility for federal income-tested benefits and credits.
8 s3 I. o8 }/ b' i9 X! PWithdrawals 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.
7 g$ C% `0 [; _  A; ?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

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