THE 360 NEWSLETTER

Following the launch of the First Home Savings Account (FHSA) and in response to questions received, we would like to provide clarification regarding transfers from RRSPs to FHSAs.

Generally, you can transfer property  from a client’s RRSP  to a FHSA without any immediate tax consequences for the client, as long as it is a direct transfer and does not exceed the client’s unused FHSA participation room  at the time of the transfer. 

To complete a direct transfer from an Investia nominee RRSP to a client-name FHSA, please ensure that “Form RC720, Transfer from your RRSP to your FHSA” has been completed by the client and sent to Investia for processing, along with your Order Instruction Form.

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 of the Government of Canada website.

Please note that it is not possible to make a direct transfer from a TFSA to a FHSA. A withdrawal will have to be made from the TFSA and a contribution to the FHSA will have to be made. You will need to ensure that the client has the available room to make the contribution.

Should you have any questions, please contact our Client Services Team, by email at investia@investia.ca, by phone at 1-888-684-5548, or use the chatbot feature available on the Advisor Centre.