Canadians are free to top up their 2015 tax-free savings account contribution without fearing any sort of penalty, bank officials said Thursday.
The government’s budget released Tuesday increased the annual contribution limit to TFSAs from $5,500 to $10,000 and made it effective to Jan. 1, 2015.
Following the announcement there was confusion about whether Canadians could put another $4,500 into their TFSA account right away. The early birds, who were rushing to top up, reported their banks were saying to hold off until the budget was passed.
“Economic Action Plan 2015 proposes to increase the TFSA annual contribution limit to $10,000 effective for 2015 and subsequent tax years,” according to budget documents.
WOW, $10K for 2015? When did this happen. Sadly, for the past several years i have not taken advantage of the $5,500 contribution limit CRA gives. Not sure why but seeing how it has upped to 10 makes it interesting.
We shall see.
@nate, yes, that is exactly what it means. This kind of action is mostly to appeal to the very rich. We at the bottom of the food chain picks up the problems.
Wait a minute. By changing the annual limit from $5,500 to $10,000 wouldn’t this mean Canada will be making less taxes and ineivtably have less for social programs and fixing roads?
Now if i just had the money to actually take advantage of this change it woudle be fantastic. So this change will be an additional $10,000 each year? Seems a bit much.
Conservatives are really make a mess of our budget. 🙁
Not sure if i should be happy or sad.
When did this happen?
So that i understand this correctly, we can go ahead and "overcontribute" right now in 2015 but CRA will no penalize us?
Why have i not heard anything from CRA about this?
Liberals are wholly against this change. And seeing how Liberals are pretty much Conservatives with a different name this doesnt fare to well about the long term consequences to the Canadian economy.
Fantastic news! I was staying abreast on all of this but figured it wouldn’t take affect until 2016.
Well @Angie, it is simple. Because TFSA helps the very rich mostly. And Conservatives, like their US counterparts, serve just the rich. Welcome to the modern Canadian politics.
I’m enjoying Harper more and more! I’m guessing election season is around the corner 😛
If 77% of Canadians have not even maxed out their contributions then what is the point of changing the limit up 82%? Makes no sense.