TFSA limit could swell to $10,000 when Tories balance budget

Excellent news. TFSA’s are dollar for dollar better and more flexible than RRSP’s!

Financial Post | Business

A promise is a promise — at least the investment community hopes the Conservatives see it that way.

Prime Minister Stephen Harper has vowed that before he is re-elected, he will allow Canadians to double what they can contribute to a Tax-Free Savings Account (TFSA), if the budget is balanced.

With the government close to a balanced fiscal position, increased attention is now focused on that pledge, and the possibility that annual limits will climb to $10,000.

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The TFSA, introduced for the 2009 tax year with a $5,000 limit, does rise by $500 increments based on certain inflation targets and is now $5,500 annually.

“This will make a huge difference. I mean $5,500 [per year] isn’t spare change, but in terms of funding a lifetime of retirement, [$5,500] is not that big. But at $10,000, the numbers start to really add up,” says Tom Hamza, president of the…

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