Interesting News for Canadians in the Fed Budget

[black_knight6]

So although it's hard to like the Conservatives for, well, anything...they've done something interesting.

We all know about RRSPs and how awesome they are, but the big drawback is that there are huge penalties for taking out your monies early (unless it's for the Home Buyer's Plan or the education one)...

Until now.

Now they're proposing a Tax-Exempt Savings account project where everyone can contribute up to $5k/year into savings accounts (I don't know what vehicles we can use...whether it has to be something like a GIC or ING savings account...dunno about money market funds, or stocks/bonds/funds). The money can be taken out at any time with no penalty, and there is NEVER a capital gains tax...ever. The only thing is that contributions aren't tax-deductible like RRSPs, but that's not a huge deal for most folks.

This is awesome for people who want to take advantage of RRSP tax-exempt status, but aren't eligible to use that money for the HBP or education plan (which is most people...the HBP only counts for FIRST homes). So, if you want to save for a trip, buy a big ticket item...or put your "emergency" money away in a tax-exempt account because you don't want to put money you might need to access in an RRSP.

Cool.

[NorthView]

Interesting for Canadians, Mogadon for everyone else.

[Underground]

[black_knight6]

[MVPSPORTS]

[black_knight6]

[NorthView]

[black_knight6]