New tax-free saving account

maomeimei

Any one know how this new policy works?

howardxue

How the Tax-Free Savings Account Will Work
" C$ X; E6 |& X! e! ~Starting in 2009, Canadian residents age 18 or older will be eligible to contribute up to $5,000 annually to a TFSA, with unused room being carried forward.
; B7 h: Z$ E! @Contributions will not be deductible.
0 m. g4 g3 b* BCapital gains and other investment income earned in a TFSA will not be taxed.
7 H5 |4 G. a! HWithdrawals will be tax-free.
% O6 P& n! v# @. D- L, d5 |" q  CNeither income earned within a TFSA nor withdrawals from it will affect eligibility for federal income-tested benefits and credits.
: X1 M4 Y; E! [- [Withdrawals will create contribution room for future savings.
3 o( Z2 h6 |1 c5 j& B( Z3 i* ^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.
5 J5 ?3 E( J* |, f" U; \Qualified investments include all arm’s-length Registered Retirement Savings Plan (RRSP) qualified investments.
& X5 M* {; x2 ]$ i1 N4 M3 aThe $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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