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 $5,000 annually to a TFSA, with unused room being carried forward.
2 T( s" R. ^( ^' M, tContributions will not be deductible.
1 |" {7 L# T, p/ \8 N' DCapital gains and other investment income earned in a TFSA will not be taxed.
: ]7 i+ q& h' h1 l8 ~Withdrawals will be tax-free.
# l* P7 P; Q- l* H# @" ONeither income earned within a TFSA nor withdrawals from it will affect eligibility for federal income-tested benefits and credits.
Withdrawals will create contribution room for future savings.
2 p, v/ ]5 ^# x$ n8 O/ \6 A. E2 nContributions 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.
6 r5 P% x3 o: qQualified investments include all arm’s-length Registered Retirement Savings Plan (RRSP) qualified investments.
% K7 `1 D% ~; YThe $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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