Participating in your FHSAs
Find out your FHSA participation room, and learn about how your FHSA participation room and FHSA carryforward are calculated.
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How much you can contribute or transfer
Your FHSA participation room for the year is the maximum amount that you can contribute to your FHSAs or transfer from your registered retirement savings plans (RRSPs) to your FHSAs in the year without creating an excess FHSA amount . For more information about transfers, go to Transfers between FHSAs and other registered plans.
Your FHSA participation room in the year that you open your first FHSA =$8,000
The lifetime FHSA limit =$40,000
All contributions you make to your FHSAs and all transfers from your RRSPs to your FHSAs will reduce your remaining lifetime FHSA limit. If your contributions and transfers to your FHSAs in the year exceed your FHSA participation room for the year, you will have an excess FHSA amount. For more information about an excess FHSA amount, go to What happens if you contribute or transfer too much to your FHSAs.
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Example 1
Julianne opened an FHSA in April 2023. Julianne’s FHSA participation room for 2023 was $8,000 because this was the first year she opened an FHSA. Julianne thought that she could contribute $8,000 to her FHSA and transfer $8,000 from her RRSPs to her FHSA.
Julianne checked the Canada Revenue Agency (CRA) web pages and found out that her FHSA participation room of $8,000 applied to her contributions and transfers combined, which were made in the calendar year.
- plus Transfers
- +plus Contributions
- =eqauls $8,000
Julianne was allowed to contribute or transfer a total of $8,000 in 2023.
In August 2023, Julianne decided to transfer $7,500 from her RRSPs to her FHSA. In December 2023, Julianne decided to use her unused FHSA participation room for 2023 and contributed $500 to her FHSA.
Julianne’s total contributions of $500 and total transfers of $7,500 did not exceed her FHSA participation room for 2023.
- plus Transfered $7,500 from her RRSPs to her FHSA
- +plus Contributed $500 to her FHSA
- =eqauls $8,000
Julianne’s FHSA participation room for 2024 is $8,000.
- plus $8,000
- +plus $0 (FHSA carryforward)
- =eqauls $8,000
Julianne is allowed to contribute or transfer up to a maximum of $8,000 in 2024.
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Example 2
Jessica opened her first FHSA on August 21, 2023. Jessica’s FHSA participation room for 2023 was $8,000 because this was the first year she opened an FHSA.
Jessica contributed $8,000 to her FHSA in September 2023. She did not make any other contributions to her FHSA or transfers from her RRSPs to her FHSA for the rest of the year. At the end of 2023, the fair market value (FMV) of Jessica’s FHSA increased to $8,600.
Jessica was worried that she would only be able to contribute or transfer up to a maximum of $7,400 in 2024. She thought the $600 increase in the value of her FHSA would reduce her FHSA participation room for 2024.
Jessica called the Canada Revenue Agency (CRA) to confirm her FHSA participation room for 2024. The CRA agent told Jessica that the income earned in her FHSA would not reduce her FHSA participation room for 2024 or subsequent years.
Jessica’s FHSA participation room for 2024 is $8,000.
- plus $8,000
- +plus $0 (FHSA carryforward)
- =eqauls $8,000
Jessica is allowed to contribute or transfer up to a maximum of $8,000 in 2024.
Participating in more than one FHSA
Your FHSA participation room for the year applies towards all of the FHSAs you open. This means you can open more than one FHSA, but the total amount you can contribute to all of your FHSAs and transfer from your RRSPs to all of your FHSAs cannot be more than your FHSA participation room for the year. For more information about opening an FHSA, go to Who can open an FHSA.
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Example
Nayeon opened an FHSA with Bank A in May 2023. In June 2023, she opened another FHSA with Bank B. Nayeon’s FHSA participation room for 2023 was $8,000 because this was the first year that she opened an FHSA.
Nayeon was not sure whether her FHSA participation room for 2023 applied to all of her existing FHSAs, or if there would be a separate FHSA participation room for each of her FHSAs.
Nayeon checked the Canada Revenue Agency (CRA) web pages and found out that her FHSA participation room applies to all of her existing FHSAs.
The total of Nayeon’s contributions to her FHSAs and transfers from her RRSPs to her FHSAs with both Bank A and Bank B cannot be more than $8,000 in 2023.
- plus Bank A (contributions and transfers)
- +plus Bank B (contributions and transfers)
- =eqauls $8,000
In July 2023, Nayeon decided to use all of her FHSA participation room for the year. She contributed $5,000 to her FHSA with Bank A and contributed $3,000 to her FHSA with Bank B. Nayeon’s total contributions of $8,000 in 2023 did not exceed her FHSA participation room for 2023.
- plus $5,000 (contributions to her FHSA with Bank A)
- +plus $3,000 (contributions to her FHSA with Bank B)
- =eqauls $8,000
Nayeon’s FHSA participation room for 2024 is $8,000.
- plus $8,000
- +plus $0 (FHSA carryforward)
- =eqauls $8,000
Nayeon is allowed to contribute or transfer up to a maximum of $8,000 in 2024.
FHSA carryforward
You can carry forward your unused FHSA participation room at the end of the year, up to a maximum of $8,000, to use in the following year. This amount is referred to as your FHSA carryforward. Any FHSA carryforward will be included in the calculation of your FHSA participation room for the year.
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Example – FHSA carryforward amount from one year
In April 2023, Mayumi opened her first FHSA. Mayumi’s FHSA participation room in 2023 was $8,000 because this was the first year she opened an FHSA.
Mayumi contributed $2,000 in May 2023.
Mayumi did not contribute to her FHSA or transfer from her RRSPs to her FHSA for the rest of the year.
Since Mayumi used only $2,000 out of her $8,000 FHSA participation room in 2023, her FHSA carryforward is $6,000, which is included in her FHSA participation room for 2024.
- plus $8,000 (FHSA participation room for 2023)
- –plus $2,000 (contributions in 2023)
- =eqauls $6,000 (FHSA carryforward)
Mayumi’s FHSA participation room for 2024 is $14,000.
- plus $8,000
- +plus $6,000 (FHSA carryforward)
- =eqauls $14,000
Mayumi decided to use all of her FHSA participation room for 2024 and contributed $14,000 in November 2024.
Since Mayumi used up all her FHSA participation room for 2024, she has no FHSA carryforward to include when she calculates her FHSA participation room for 2025.
- plus $14,000 (FHSA participation room for 2024)
- –plus $14,000 (contributions in 2024)
- =eqauls $0 (FHSA carryforward)
Mayumi’s FHSA participation room for 2025 is $8,000.
- plus $8,000
- +plus $0 (FHSA carryforward)
- =eqauls $8,000
Mayumi is allowed to contribute or transfer up to a maximum of $8,000 in 2025.
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Example – FHSA carryforward amount from more than one year
Seonho opened an FHSA in October 2023. He did not contribute to his FHSA or transfer from his RRSPs to his FHSA until 2030.
Even though Seonho did not use any of his FHSA participation room from 2023 to 2029, his FHSA carryforward for 2030 is only $8,000. This is because the maximum amount of unused FHSA participation room that can be carried forward to a subsequent year is $8,000.
Seonho’s FHSA participation room for 2030 is $16,000.
- plus $8,000
- +plus $8,000 (FHSA carryforward)
- =eqauls $16,000
Seonho is allowed to contribute or transfer up to a maximum of $16,000 in 2030.
Where to find your FHSA participation room
After you have opened your first FHSA, you can find the details about your FHSA participation room on your notice of assessment or reassessment. More information about these notices will be available at a later date.
Your spouse’s or common-law partner’s FHSAs
You are not permitted to participate directly in your spouse’s or common-law partner’s FHSA. Your spouse or common-law partner is the only person who can participate in their own FHSA.
Only the holder of the FHSA can claim the FHSA contributions as a tax deduction on their income tax and benefit return. For more information about tax deductions for your FHSA contributions, go to Tax deductions for FHSA contributions.
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Example
John Lloyd and Donnalyn are common-law partners who went to their financial institution to open an FHSA.
John Lloyd asked the financial institution if he could open an FHSA in Donnalyn’s name, contribute to Donnalyn’s FHSA, and claim the FHSA deductions for the contributions he made to Donnalyn’s FHSA on his income tax and benefit return.
The financial institution told John Lloyd that he could not do this. If the FHSA is opened in Donnalyn’s name, then Donnalyn would be the holder, and she is the only person who could make contributions to her FHSA or transfers from her RRSPs to her FHSA.
Contributions during the first 60 days of the year
Unlike RRSPs, contributions that you make to your FHSAs during the first 60 days of the year are not deductible on your previous year’s income tax and benefit return. You also cannot claim a tax deduction for any FHSA contributions that you make after your first qualifying withdrawal .
For more information about tax deductions for your FHSA contributions, go to Tax deductions for FHSA contributions.
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