IIAC is asking the federal government to increase annual contribution limits for TFSAs and RRSPs in the 2015 budget.
The investment association made the recommendation, in a letter to the House of Commons’ Finance Committee, which is holding pre-budget consultations. As part of the request to raise limits, IIAC asks that the government also allow for people who have lost their jobs, gone back to school, or stopped working to raise a child to be able to make compensatory contributions to their registered accounts without being penalized.
IIAC made four other recommendations in its submission. It asks for:
- Adoption of a “rollover” provision for deferral of capital gains tax on the asset sold, conditional on the purchase of common shares of small listed Canadian companies within six months of the asset sale.
- Implementation of a tax incentive program for new and emerging businesses. This program is modeled after the UK Enterprise Investment Scheme (EIS).
- Deduction of CPP and EI payments for employer and employee contributions to Group RRSPs.
- Elimination of the minimum annual withdrawal requirement from RRIFs.
The budget is expected in February or March of 2015. It is scheduled to be the last budget before the scheduled fall election.