By Scott Ronalds

We announced yesterday that the federal government’s budget proposed an increase in the annual contribution limit for Tax-free Savings Accounts (TFSAs) to $10,000 (up from $5,500).

Canada Revenue Agency (CRA) has confirmed that Canadians can top up their TFSAs with the new limit for 2015 effective immediately, without waiting for the legislation to receive Royal Assent.

What does this mean for you? If you had maxed out your TFSA contributions prior to the announcement, you can now add another $4,500 to your account. If you have never made a contribution to a TFSA and meet all the eligibility requirements, you now have lifetime contribution room up to $41,000 (up from $36,500).