Q&A: Changes to OAS and TSFAs

A reader is curious about promised changes to OAS and TFSA limits.

Q – The Conservative party tried to increase eligibility for Old Age Security from 65 to 67 years. Will the Liberal party reverse this back to 65? Also, let’s say the budget for 2016 will come out in March or April. Can I contribute $10,000 to my TFSA in February before this changes in the budget? Or will my contribution have to be at the limit of $5,500? – George V.

A – The Liberal Party’s campaign platform promised to restore the age of eligibility for OAS and the Guaranteed Income Supplement to 65, although no timetable for doing this has been announced. The platform said the move would put “an average of $13,000 into the pockets of the lowest income Canadians each year, as they become seniors”.

Finance Minister Bill Morneau announced in early December that the annual contribution limit for Tax-Free Savings Accounts would be rolled back to $5,500, effective Jan. 1 of this year. – G.P.

Gordon-Pape_HR_DSC4847

Do you have a money question you’d like to ask Gordon? Find out how to submit it here and then check out our Money section regularly to see if it was chosen for a response. Sorry, we cannot send personal answers.