New tax-free saving account

maomeimei

Any one know how this new policy works?

howardxue

How the Tax-Free Savings Account Will Work
: ~! O! ^+ j7 _# bStarting in 2009, Canadian residents age 18 or older will be eligible to contribute up to $5,000 annually to a TFSA, with unused room being carried forward.
Contributions will not be deductible.
+ o* }. I# p, [; }! p5 S. YCapital gains and other investment income earned in a TFSA will not be taxed.
+ B+ c* @1 T: q  Y0 gWithdrawals will be tax-free.
4 j: q$ U( ^6 w7 P+ lNeither income earned within a TFSA nor withdrawals from it will affect eligibility for federal income-tested benefits and credits.
. m8 {" R5 e1 ~- q+ k( Q8 bWithdrawals will create contribution room for future savings.
+ B" b- I9 k4 V0 t( d, IContributions 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.
; _1 l/ P; D( l+ o& k( J! GQualified investments include all arm’s-length Registered Retirement Savings Plan (RRSP) qualified investments.
. j- N) \" u+ K4 R2 V9 xThe $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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