Proposed:$10000 TFSA limit. Current: $5500 TFSA limit.
The Conservative government wants to increase the amout of money that each Canadian can put in a tax free savings account (TFSA). This is proposed. This has to be approved by parliament first.
According to the Canada Revenue Agency
Quote:
- TFSAs have proven to be popular. More than 10.7 million Canadians had opened a TFSA by the end of 2013.
- The TFSA first became available in 2009. It allows Canadian residents, aged 18 or older and who have a valid social insurance number, to earn tax-free investment income throughout their lifetime.
- Contributions to a TFSA are not deductible for income tax purposes, but investment income earned in a TFSA and withdrawals from it are tax-free.
- The TFSA provides greater savings incentives for low-and modest-income individuals because, in addition to tax savings, neither the income earned in a TFSA nor withdrawals from it affect eligibility for federal income-tested benefits and credits, such as the Canada Child Tax Benefit, the Goods and Services Tax/Harmonized Sales Tax Credit, the Age Credit, and Old Age Security and Guaranteed Income Supplement benefits.
- Canadians can track their annual TFSA contribution limit easily using the CRA's My Account secure online self-service portal.
- TFSAs are an important savings tool for Canadians. Budget 2015 clearly states 60 per cent of the individuals contributing the maximum amount to their TFSAs had incomes of less than $60,000 in 2013.
- Forty-six per cent of individuals who have maxed out their TFSAs were seniors and over 70 per cent were aged 55 or over.
