A Tax Free Savings Account (TFSA) allows you to set money aside tax-free to meet your financial goals. You cannot deduct contributions to a TFSA for income tax purposes; however, any contributions you do make and the income you earn in the account are generally tax-free, even when it is withdrawn.

The federal government’s 2015 budget highlighted changes to the maximum annual contribution to TFSA’s. People are now able to make an annual contribution of $10,000, a large increase from the previous $5,500 limit.

Since the budget came out, there have been questions about when people can start contributing the new maximum amounts into their TFSA’s.

Even though the proposed measure is still subject to parliamentary approval, the Minister of National Revenue and the Minister of Finance are advising Canadians that the Canada Revenue Agency (CRA) is allowing individuals to immediately benefit and make use of the new TFSA contribution limits.

Banks including TD Canada Trust, CIBC, Scotiabank, Royal Bank, and the Bank of Montreal have all confirmed that they are allowing clients to contribute the new proposed limits.

If you have any questions or concerns about Tax Free Savings Accounts and the new annual contribution limits, there is much more information available on the CRA website.

Suggested Reading

Pt. 2 Record-High Penalties: Kim, Castiglioni, and IFC

Pathway-2-Posterity turns into Pathway-2-Ponzi

Madoff on Madoff: Wealthy clients and affinity networks used to the feed scheme

More Resources

In Your Community – February 2014

BCSC staff ambassadors tour the province, helping people to protect themselves from fraud and unsuitable investments. Our goal is to enable BC investors to develop critical thinking skills so they can become more informed of steps they should take to protect themselves when investing. Where we are this month White RockBe Fraud Aware February 4Private […]

CISC report confirms investment fraud on the rise

The Criminal Intelligence Service of Canada (CISC) released its 2010 Report on Organized Crime. This year, it focuses on securities fraud.   The report confirms what we have been blogging about extensively.  The increased use of social networking sites to recruit victims and promoters combined with the economic downturn has produced more Ponzi and fraudulent investment schemes than […]