Transfers into your FHSAs

Generally, you can transfer property between your first home savings accounts (FHSAs) or from your registered retirement savings plans (RRSPs) to your FHSAs without immediate tax consequences, as long as it is a direct transfer. Transfers from your RRSPs to your FHSAs must not exceed your unused FHSA participation room at the time of the transfer.

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How much can you transfer

Your FHSA participation room for the year is the maximum amount that you can contribute to your FHSAs or transfer from your RRSPs to your FHSAs in the year without creating an excess FHSA amount.

For more information on your FHSA participation room, go to Participating in your FHSAs.

Direct transfers into your FHSAs

Generally, you can transfer property between your FHSAs or from your RRSPs to your FHSAs without any immediate tax consequences, as long as it is a direct transfer.

Transfers from your RRSPs to your FHSAs

To complete a direct transfer from your RRSPs to your FHSAs, fill out Form RC720, Transfer from your RRSP to your FHSA and give it to your financial institution.

If you make a direct transfer from your RRSPs to your FHSAs, the transfer will reduce your unused FHSA participation room.

The transfer of property from your RRSPs to your FHSAs will not restore your unused RRSP deduction room.

If you have RRSP excess contributions at the time of the transfer from your RRSPs, the transfer of property to your FHSAs will not reduce or eliminate your excess RRSP contributions. For more information, go to T4040 RRSPs and Other Registered Plans for Retirement.

It should be noted that while contributions to your FHSAs can be deductible on your income tax and benefit return, any transfers from your RRSPs to your FHSAs are not deductible. For more information, go to Tax deductions for FHSA contributions.

Transfers from a spousal or common-law partner RRSP

Generally, you can transfer property from your spousal or common-law partner RRSPs to your FHSAs. However, you are not permitted to make a transfer from your spousal or common-law partner RRSP to your FHSAs if your spouse or common-law partner contributed any amounts to any spousal or common-law partner RRSP in the same year as the transfer or in the two previous calendar years. If no contributions were made by your spouse or common-law partner during this period, the normal RRSP to FHSA transfer rules apply.

The transfer of property from your spousal or common-law partner RRSPs to your FHSAs will not restore your or your spouse's or common-law partner's unused RRSP deduction room.

To complete a direct transfer from your spousal or common-law partner RRSPs to your FHSAs, fill out Form RC720, Transfer from your RRSP to your FHSA and give it to your financial institution.

Transfers between your FHSAs

To complete a direct transfer between your FHSAs, you must fill out Form RC721, Transfer from your FHSA to your FHSA, RRSP or RRIF and give it to your financial institution.

If you make a direct transfer between your FHSAs, the transfer will not reduce your unused FHSA participation room.

If you withdraw the property from your FHSA yourself and contribute the same property to another FHSA of yours, this transaction would not be considered a direct transfer. The amount will be treated as a new contribution to your other FHSA, which will reduce your unused FHSA participation room in the year of the new contribution and may cause you to have an excess FHSA amount.

Transfers from your other registered plans to your FHSAs

Direct transfers into your FHSAs can only be made from your:

You cannot directly transfer property from any other registered plans to your FHSAs including:

Any property that you transfer from other registered plans to your FHSAs will be treated as both:

For more information on TFSAs, go to The Tax-Free Savings Account.

For more information on transfers between your other registered plans, go to T4040 RRSPs and Other Registered Plans for Retirement.

Reporting transfers into your FHSAs

Your FHSA issuer will give you a T4FHSA First Home Savings Account Statement slip showing the total amounts you transferred from your RRSPs to your FHSAs in the year in box 32 and the total amounts you transferred from your spousal RRSPs to your FHSAs in the year in box 34.

You must report the total of these when you file your income tax and benefit return for the year of the transfer. More information about where to include the above information on your income tax and benefit return will be available at a later date.

You do not need to report the property you transferred between your FHSAs on your income tax and benefit return.

For more information on reporting your FHSA activities to the CRA, go to Reporting FHSA activities on your income tax and benefit return.

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