New tax-free saving account

maomeimei

Any one know how this new policy works?

howardxue

How the Tax-Free Savings Account Will Work
& c, W! q# W: G1 k0 j( Y; KStarting 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.
# }. y5 N7 j7 W8 p: c+ |: XContributions will not be deductible.
Capital gains and other investment income earned in a TFSA will not be taxed.
) {% U  ], A& I2 k4 `, f0 @9 jWithdrawals will be tax-free.
- O- Q! ~2 a1 ]2 X, O( S  e3 ]Neither income earned within a TFSA nor withdrawals from it will affect eligibility for federal income-tested benefits and credits.
( H" F' H' C- Q9 U- x7 c8 QWithdrawals will create contribution room for future savings.
. {. Q9 M' `0 _8 N5 G0 G. N: ?: dContributions 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.
Qualified investments include all arm’s-length Registered Retirement Savings Plan (RRSP) qualified investments.
2 w7 H* w. G7 R, s  L3 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

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