OTTAWA – Ottawa says Canadians will be able to be able to contribute an additional $500 a year on their Tax Free Savings Accounts starting Jan. 1.
That means Canadians can put in $5,500 a year, with any investment income earned not subject to taxation while it remains in the TFSA.
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When the TFSAs were created in 2009, the government said it would index the contribution limit to inflation in $500 increments.
The Jan. 1 increase will be the first adjustment in the contribution limit.
The government says about 8.2 million Canadians have opened a tax-free account.
It says 2.5 million Canadians contributed the maximum $5,000 amount last year.
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