I work at RBC and received this via email today
As a follow up to the Proposed Federal Budget Changes, we have further information from Canada Revenue Agency (CRA) in regards to the proposed TFSA contribution limit increase to $10,000.
The CRA will allow financial institutions and individuals to act upon the new change effective immediately – prior to it passing through Parliament and before receiving Royal Assent.
Prior to implementing any strategies, individuals should consult with a qualified tax advisor, legal professional or other applicable professional.
Advice Conversations
Tax Free Savings Accounts
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Confirm with clients the approved TFSA contribution limit is $ 5,500 for 2015.
- Acknowledge the budget proposes increasing the annual contribution limit to $10,000 and while this has not been approved, CRA is allowing individuals to act upon the proposed changes now.
- Accept the additional $4,500 for 2015 and document on Sales Platform that you have had the conversation and they are aware that there is a chance that the budget is not ultimately passed.
- Remind the client it’s their responsibility to ensure they do not exceed their TFSA contribution room.
Cheers
Green
