New tax-free saving account

maomeimei

Any one know how this new policy works?

howardxue

How the Tax-Free Savings Account Will Work
/ D* K( a  S5 ^Starting in 2009, Canadian residents age 18 or older will be eligible to contribute up to $5,000 annually to a TFSA, with unused room being carried forward.
+ ]" a  j$ }) Q9 gContributions will not be deductible.
Capital gains and other investment income earned in a TFSA will not be taxed.
$ v" [7 x, n. F- dWithdrawals will be tax-free.
% T: v! O" f! X% f! ~Neither income earned within a TFSA nor withdrawals from it will affect eligibility for federal income-tested benefits and credits.
$ _( n  _6 |1 IWithdrawals will create contribution room for future savings.
3 n6 m( ^2 N$ MContributions 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.
! d$ T$ x. B* E1 `3 |( cQualified investments include all arm’s-length Registered Retirement Savings Plan (RRSP) qualified investments.
5 p$ z# E. W  Q: u/ ~3 @: zThe $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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