New tax-free saving account

maomeimei

Any one know how this new policy works?

howardxue

How the Tax-Free Savings Account Will Work
" `$ ~1 {& T+ Y3 Y, Q% v: p: NStarting 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.
& B, W# e/ Z# P. W8 ~6 PCapital gains and other investment income earned in a TFSA will not be taxed.
& ?9 L6 k! \. ?) `, k6 Y3 m' c) u% KWithdrawals will be tax-free.
; @# H  r+ n1 x, ]) L* t& `# }( }+ V! a% sNeither income earned within a TFSA nor withdrawals from it will affect eligibility for federal income-tested benefits and credits.
5 _. u. |0 @; LWithdrawals will create contribution room for future savings.
6 b0 y- M- v  UContributions 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.
. ~: _2 |, Z) Y  i7 PQualified investments include all arm’s-length Registered Retirement Savings Plan (RRSP) qualified investments.
7 B9 \" t5 J1 B) E/ 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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