People maxing out TFSAs “in virtual free fall;” new $10,000 contribution limit will disproportionately benefit those of higher income and wealth
OTTAWA--Even before the Conservative government increased the contribution limit for Tax-Free Savings Accounts, the proportion of people maxing out their TFSAs had dropped dramatically from 64 per cent to under 18 per cent. Moreover, participation and maximization patterns by age and income suggest that asset shifting and income splitting are the primary sources of contributions rather than new saving, a new Broadbent Institute study has found.
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