New tax-free saving account

maomeimei

Any one know how this new policy works?

howardxue

How the Tax-Free Savings Account Will Work
- t; y/ a9 X. x' J. @9 k5 uStarting in 2009, Canadian residents age 18 or older will be eligible to contribute up to $5,000 annually to a TFSA, with unused room being carried forward.
Contributions will not be deductible.
) m' F, A" A8 f  v5 eCapital gains and other investment income earned in a TFSA will not be taxed.
( d" v! l! g4 H+ ]$ ~% mWithdrawals will be tax-free.
6 ]; e& v6 @1 R+ a* B5 oNeither income earned within a TFSA nor withdrawals from it will affect eligibility for federal income-tested benefits and credits.
Withdrawals will create contribution room for future savings.
  ~: T) }6 f/ k6 _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.
3 v0 ^  U" P+ v, b) mQualified investments include all arm’s-length Registered Retirement Savings Plan (RRSP) qualified investments.
5 g+ E! ]8 v. b' B; N! cThe $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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