For any Americans here who might not be aware, TFSA stands for 'Tax Free Savings Account'.

Starting in 2009 our goverment created this savings vehicle. Just to be clear, this is not a retirement savings account like the 401K Americans have. The Canadian equivilant to the 401K is the Registered Retirement Saving Plan or RRSP for short.

The TFSA can be used for retirement, or anything else. The money invested inside of the TFSA does not generate a tax credit or any tax savings, but there are no capital gain taxes on the growth. Someone who puts $25,000 into their TFSA, and let's say a year later they've doubled it (I wish)....this person could, if they wished, withdraw any portion or all of the money and it would be completely tax free.

When it started in 2009 the limit was $5,000....then in 2013 it was raised to $5,500....and last year it went up to $10,000. And what's beautiful is its retroactive, meaning someone who hasn't invested the full $41,000 (as of 2015) limit can still max out now or at any point in the future.

I'm assuming most of the Canucks on this board already knew all this......now the interesting part.

Our newly elected government has promised to roll back the annual contribution limit to $5,500 in 2016 and this is where it gets interesting. To roll the contribution back, the goverment would have to make the measure part of a budget bill. And we likely won't be seeing a budget tabled in the House of Commons until February or March. So until that time the limit is still $10,000.

Conceivably they could make the move retroactive to January 1st 2016...but everything I've read on the subject says that is incredibly unlikely as it creates an administrative nightmare. More likely is that the limit will still be $10,000 for those who are able to shelter the money before the budget comes down....and too bad so sad for those who wait.

Personally I will be chunking in the full $10K on January 4th, the first regular business day of the new year. Whether I'll be using any of that money to buy RVX will depend on how things look at that time and where the PPS is trading at.

Here's one article on it for those who want to read more:

http://www.thestar.com/business/2015/10/23/expect-liberals-to-roll-back-tfsa-limit-pape.html