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CICA welcomes contribution increase for Tax-Free Savings Accounts

TORONTO, Nov. 26, 2012 /CNW/ - The Canadian Institute of Chartered Accountants (CICA) applauds the federal government's announced increase to the annual contribution limit for Tax-Free Savings Accounts (TFSA).

Starting in 2013, Canadians will be able to save an additional $500 with the annual contribution limit climbing to $5,500.  This move is in line with recommendations made by the CICA as part of its pre-budget submission to the House of Commons Standing Committee on Finance.

"Our submission called on the federal government to provide further incentives for Canadians to save money for their retirement," explained Kevin Dancey, FCA, president and CEO, CICA.  "Increasing the limit on TFSA contributions was among the measures we recommended."

The CICA submission also underscored the need for individuals to have financial skills and knowledge when planning and saving for their retirement. 

"The adequacy of retirement savings is among the key challenges associated with an aging population," said Dancey.  "Incentives are needed to encourage Canadians to save more but individuals also require financial knowledge to make the best choices based on their circumstances."

The CICA's pre-budget submission is available online (www.cica.ca/prebudget2012).

Chartered Accountants (CAs) are Canada's most valued, internationally recognized profession of leaders in senior management, advisory, financial, tax and assurance roles. Through their integrity, expertise, and internationally recognized qualification standards, Canada's 82,000 CAs sustain their influence and leadership position both in Canada and globally. As trusted business advisors to Canadian organizations of all sizes, Canada's CAs foster confidence in Canadian business and contribute to the health and sustainability of Canada's capital markets and economy. The Canadian Institute of Chartered Accountants (CICA) represents Canada's CA profession both nationally and internationally. The CICA is a founding member of the International Federation of Accountants (IFAC) and the Global Accounting Alliance (GAA).

SOURCE Canadian Institute of Chartered Accountants

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