New tax-free saving account

maomeimei

Any one know how this new policy works?

howardxue

How the Tax-Free Savings Account Will Work
. h- |# |% A9 r1 O7 @* o5 e% VStarting in 2009, Canadian residents age 18 or older will be eligible to contribute up to $5,000 annually to a TFSA, with unused room being carried forward.
! ?) K' f5 {) {9 ?; O) ?Contributions will not be deductible.
Capital gains and other investment income earned in a TFSA will not be taxed.
Withdrawals will be tax-free.
; b% ^0 D; H9 y! g' XNeither income earned within a TFSA nor withdrawals from it will affect eligibility for federal income-tested benefits and credits.
9 J; L8 e; u" [" o+ i8 QWithdrawals will create contribution room for future savings.
Contributions to a spouse’s or common-law partner’s TFSA will be allowed, and TFSA assets will be transferable to the TFSA of a spouse or common-law partner upon death.
, j* I, I1 E' h- p# lQualified investments include all arm’s-length Registered Retirement Savings Plan (RRSP) qualified investments.
  C3 q) G$ s2 |) o( HThe $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