FHSA guide: contribution room, deductions and first-home withdrawals

Annual and lifetime limits

The FHSA framework provides an $8,000 annual contribution limit and a $40,000 lifetime contribution limit. Your personal room can differ based on when you opened your first FHSA and prior contributions or transfers.

Carryforward

Unused participation room can be carried forward, subject to the FHSA rules and limits. Importantly, room starts accumulating only after you open your first FHSA.

Tax treatment

Qualifying contributions can be deductible. Investment growth inside the account is sheltered, and a qualifying withdrawal for a first home can be tax-free.

Why opening timing matters

Someone who is eligible but has not opened an FHSA generally does not accumulate annual room simply by waiting. That makes account-opening timing different from TFSA room accumulation.