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Showing posts from April, 2015

TFSA, RRIF and other changes from the 2015 Federal Budget

Here are the personal tax changes from the Federal Budget yesterday. TFSA The TFSA was introduced in 2009 as a way to save and invest for your future on a tax exempt basis. Contributions to a TFSA is not tax deductible but gains, income and withdrawals are tax free. Originally, the TFSA started with a $5,000 limit subject to inflation adjustments of $500 increments. Because of this, the TFSA limit from 2009 to 2012 was at $5,000, but changed to $5,500 from 2013 to 2014. The new 2015 budget proposes to increase the TFSA annual contribution limit to $10,000 effective immediately and going forward. However, the annual contribution limit will no longer be indexed to inflation but will be increased only if legislated. So if you have never contributed into a TFSA, you can now contribute up to $41,000 as long as you have been 18 years old since 2009. You can invest your TFSA into a variety of investments like stocks, bonds, GICs, mutual funds and segregated funds. RRIF A RRIF i