Saturday, 6 June 2015

TFSA Lifetime Contribution Limit

Q144: By the end of 2016, will the federal government officially announce a lifetime contribution limit or lifetime value limit for TFSAs?
Yes: 15%
(A lifetime value limit is a limit on the total value of investments that can be held in a TFSA)

There has been some suggestion that that a lifetime contribution limit will be imposed for TFSAs (see article here), especially with the higher annual contribution limit.  South Africa, which has recently introduced TFSAs, included a lifetime contribution limit.

As far as I know, there have been no definite promises of a lifetime contribution limit by any current politician.  In the medium to long run, I think a lifetime contribution limit (or something like it) is very likely to be introduced, but I don't think one will necessarily be introduced in the short run.

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