Canadian Tax Free Saving Account
The new Federal budget will include the following:
Tax-free Savings Account.
Individuals will be able to put up to $5,000 a year into one of the accounts. Capital gains earned on investments in the account will be exempt from tax, even when withdrawn. Account holders will be able to withdraw money at any time without restriction. Unlike an RRSP, contributions to the new account will not be tax-deductible.
This is a pretty sweet deal.