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 $5,000 annually to a TFSA, with unused room being carried forward.
5 r/ A- x# v( K: P- nContributions will not be deductible.
! H' n) P) B/ N0 M5 A$ _& ^8 X$ ^8 ]Capital gains and other investment income earned in a TFSA will not be taxed.
1 _2 e% U( X$ t3 C+ |7 J/ J8 E' jWithdrawals will be tax-free.
! h* X8 E' b- e! @Neither income earned within a TFSA nor withdrawals from it will affect eligibility for federal income-tested benefits and credits.
. x; t% y: g# a2 ]) B) {' _2 c4 xWithdrawals 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.
0 {2 p- @0 P  J1 ^' {Qualified investments include all arm’s-length Registered Retirement Savings Plan (RRSP) qualified investments.
. C( W" w  R: i  g3 m8 VThe $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