Insiders, Spring 2009
On June 18, the federal government passed its 2008 Budget bill into law. This was a milestone for investors because it meant that the new Tax-Free Savings Account (TFSA) would be available to millions of Canadians beginning in January 2009. No doubt you have seen and heard a lot about this new savings vehicle in some way, shape or form.
- Capital gains and other investment income earned in a TFSA will not be taxed.
- Withdrawals will be tax-free.
- You can withdraw funds from the TFSA at any time and for any purpose.
- The $5,000 annual contribution limit will be indexed to inflation in $500 increments.
- The amount withdrawn can be put back in the TFSA at a later date without reducing your contribution room.
Call us today to find out how you can take advantage of the new Tax Free Savings Account in your savings strategy.