Canadians don't need to delay taking advantage of the near doubling of annual contribution limits for the tax-free savings account, the Finance Department and the Canada Revenue Agency confirmed Thursday in the wake of the budget measure.
"While the legislation is subject to Parliamentary approval, consistent with its general approach for proposed income tax changes, the Canada Revenue Agency is administering the measure on the basis that $10,000 is the new TFSA annual contribution limit. Clients may therefore proceed to contribute to their TFSA based on this proposed law," a spokeswoman from Finance Minister Joe Oliver's office said.
TD Canada Trust, CIBC, Scotiabank, Bank of Montreal and Royal Bank of Canada all confirmed they are allowing clients to contribute the new proposed limit to their TFSA.
Smaller providers, such as robo-adviser Wealthsimple Financial Inc., started taking client requests as early as Wednesday afternoon.
"It is proposed legislation so technically the TFSA limit could get reversed but as long as clients are made aware of that component we see this as something we can immediately act on and are already seeing a number of clients increasing their contribution," says Dave Nugent, chief compliance officer at Wealthsimple.
With a contribution from Bill Curry in Ottawa