New for January 2009

 

Tax Free Savings Accounts arrive in Canada and
PI Financial on January 1, 2009.

 

 

Described by the Finance Minister as the “single most important personal savings vehicle since the introduction of the RRSP“, this new account can offer significant tax savings, and, along with RRSP’s should now be considered by all taxpayers as part of their investment planning strategy.

To help you understand how Tax Free Savings Accounts will work, we have put together a list of facts you may wish to know.

  • You must be 18 years old and a Canadian resident in order to open a Tax Free Savings Account.

  • The Tax Free Savings Account is similar to an RRSP in that the government determines your remaining available contribution limit for the coming year.

  • The money that you contribute to your Tax Free Savings Account is not deducted from your income on your tax return.

  • The Tax Free Savings Account allows investment without taxation on interest or investment earnings.

  • The maximum annual contribution amount is $5,000.

  • Contribution room is not lost if you take out money from your Tax Free Savings Account. Unused contribution room is carried over to the following year. The amount and length of time that the contribution room can be carried forward is limitless.

  • Earned income is not required to contribute to your Tax Free Savings Account.

  • The income attribution rules do not apply in cases where your spouse uses the funds that you provide to contribute to the Tax Free Savings Account.

  • Money can be withdrawn from your Tax Free Savings Account without taxation.

Additional information is available at:

Tax Free Savings Accounts are easy to set up. Your Investment Advisor will prepare the documentation for your review and signature. Your initial deposit, up to $5,000.00, can be made by a transfer from your existing PI Financial account after January 1, 2009.

Please contact your PI Financial Advisor for more details, and to learn how to easily set up your new PI Financial Tax Free Savings account.

Set up your account now.


For a link to your PI Financial Advisor, type his/her name here: