New savings plan holds promise

New savings plan holds promise: "New savings plan holds promise


Article By: Gordon Pape

The new Tax-Free Savings Accounts announced in the budget will offer a range of investment opportunities, from income splitting to education savings.
One of the centrepieces of Finance Minister Jim Flaherty's recent budget was the announcement of legislation to create Tax-Free Savings Accounts (TFSAs), starting in 2009.
These plans will allow every Canadian over 18 to contribute up to $5,000 a year to an account that will tax-shelter all investment earnings. Unlike RRSPs, contributions will not be tax deductable, nor will withdrawals be taxed.
There is no doubt that this is an important program, one that will provide savers with a new range of strategies. Here are a few possibilities."