New tax-free saving account

maomeimei

Any one know how this new policy works?

howardxue

How the Tax-Free Savings Account Will Work
7 Q/ \" M1 o- M( B9 R2 ~# `2 ^Starting in 2009, Canadian residents age 18 or older will be eligible to contribute up to $5,000 annually to a TFSA, with unused room being carried forward.
* L$ }; l* B# UContributions will not be deductible.
8 D  E/ Z# p$ Y/ V6 D& B, cCapital gains and other investment income earned in a TFSA will not be taxed.
2 i) ?* m" C* Q6 m6 x! A0 BWithdrawals will be tax-free.
  |9 t# p- ?+ ?6 _) @3 G; |Neither income earned within a TFSA nor withdrawals from it will affect eligibility for federal income-tested benefits and credits.
4 c6 s7 d. O% ?% O1 B! {5 l& HWithdrawals 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

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