Tax-Free Savings Accounts
(New Product for 2009)
On June 18, 2008, the Government of Canada approved legislation to introduce a ground-breaking Tax-Free Savings Account (TFSA) in 2009.
The purpose of the TFSA is to provide a savings vehicle for individuals to earn tax-free investment income.
Features of this new registered product:
- Available to Canadian residents age 18 and older
- Contributions will not be tax deductible
- Contributions may only be made by the owner
- Income earned and capital gains under a TFSA will be tax sheltered
- Withdrawal of contributions and/or income will not be subject to tax
- Maximum contribution limit for 2009 will be $5,000.
- Unused contribution room may be carried forward and contributed in a future year
- Withdrawals (capital and income) will increase the unused contribution room
- Unused contribution room will be reported on the annual CRA Notice of Assessment
Member Savings Credit Union is preparing to offer the Tax-Free Savings Account to you in 2009.
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