tag:blogger.com,1999:blog-5465015914589377788.post1986217869705256053..comments2024-03-20T09:32:16.592-04:00Comments on Michael James on Money: Proposed TFSA UpgradesMichael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5465015914589377788.post-47017271018649222652009-07-30T13:16:37.917-04:002009-07-30T13:16:37.917-04:00For older Canadians, 5000 dollar inflation adjuste...For older Canadians, 5000 dollar inflation adjusted limit for annual TSFA is still very good. <br /><br />At the age of 65, money from RRSP can be taken out and contributed to TSFA. There is still a lot of time to contribute to TSFA for most people including Baby Boomers.<br /><br />I think changes will be made to TSFA. In fact, I think the contribution limits might be decreased instead of increased in the long run so that government will get more in taxes.<br /><br />For example, a person with a 50k income gets to contribute both 9k to RRSP and 5k to TSFA. In the US, a person with a 50k income gets to contribute to 5k to a traditional IRA or 5k to a Roth IRA (professionals recommend Roth IRA in most cases). As in this hypothetical example, the contribution room in Canada is 2.8 times larger than the US. RRSP will be taxed eventually, but the contribution room in Canada right now is fairly high already.Henrynoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-68930276136975231572009-07-30T10:38:17.084-04:002009-07-30T10:38:17.084-04:00What about letting people use unused RRSP contribu...What about letting people use unused RRSP contribution room for their TFSA? That would help lower-income people near retirement who weren't able to use their RRSP due to the threat of massive clawbacks on their withdrawals.Patrickhttps://www.blogger.com/profile/16816252455472704262noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-9886629341474255232009-07-30T10:09:12.525-04:002009-07-30T10:09:12.525-04:00I tend to agree with the "being fair to the y...I tend to agree with the "being fair to the younger generation argument". What I would rather see that would be fair to everyone, is a very large boost in the annual TFSA amount, say to $20,000 per year, and the elimination of the RRSP.CanadianInvestorhttps://www.blogger.com/profile/05645767559302303541noreply@blogger.com