Tax-free account increase

Ottawa says Canadians will be able to contribute an additional $500 a year on their tax free savings accounts starting on January 1st.

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.

When the TFSA’s were created in 2009, the government said it would index the contribution limit to inflation in $500 increments.

The January 1st increase will be the first adjustment in the contribution limit.