Ottawa increases contribution limit on TFSAs to $5,500

By The Staff The Canadian Press

Posted November 26, 2012 6:47 am

1 min read

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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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