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.