Canadians can benefit from the proposed increase to the Tax-Free Savings Account (TFSA) annual contribution announced in Economic Action Plan 2015, according to the government.
The limit is proposed to increase from $5,500 to $10,000, effective Jan. 1, 2015, so Canadians with new and existing accounts may start contributing up to the increased limit immediately.
The measure is still subject to Parliamentary approval and is being administered by the Canada Revenue Agency on the basis of the budget announcement.
The savings measure is popular among varied income groups, said the government. More than 80 per cent of all TFSA contributors bring in an income of less than $80,000 per annum. One-half of all TFSA contributors have an annual income of less than $42,000.
More than 10.7 million Canadians had opened a TFSA by the end of 2013.