The president of the Canadian Dental Association is praising the federal government for proposing a new Tax-Free Savings Account (TFSA). Beginning in 2009, individuals will be able to contribute up to $5,000 per year to a TFSA, with no impact on registered retirement savings plan (RRSP) contribution room. Investment earnings on funds contributed to a TFSA will not be subject to tax.
The account will allow Canadians to save and earn tax-free investment income that can be used anytime to cover any expense, including dental care.
“Seventy-three per cent of Canadians do not have a plan for how they will pay for their dental care once they retire. The federal government can play an important role in ensuring seniors have access to quality oral health care by creating financial incentives to savings. At a time when a record number of Canadians are reaching retirement age, employer-sponsored, post retirement health benefits are in sharp decline,” says Dr. Darryl Smith.
“It is imperative Canadians realize that employer benefit plans may not be available in their retirement years. The TFSA can be an important tool.”
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