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.
Contributions will not be deductible.
$ F! e6 h( n, C9 nCapital gains and other investment income earned in a TFSA will not be taxed.
$ u  a: W, u4 r2 b- B) IWithdrawals will be tax-free.
" I4 k0 Z: H. z. A9 VNeither income earned within a TFSA nor withdrawals from it will affect eligibility for federal income-tested benefits and credits.
5 T- v$ A7 Y- ~8 `. l: i, v( d& f, ~Withdrawals will create contribution room for future savings.
7 E( M+ O  A; ~  `4 oContributions 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.
$ s4 c! I; j1 u5 jQualified investments include all arm’s-length Registered Retirement Savings Plan (RRSP) qualified investments.
The $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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