Explore this section for more information about the transferring into an FHSA from another registered account.
Note: Due to administrative restrictions at some institutions, you might need to transfer your RRSP or TFSA to a similar RRSP or TFSA at Questrade before it can be transferred to an FHSA. If you have any questions you can contact our Customer Service team for assistance.
Transfers from an RRSP
In most cases, you’re able to transfer cash or investments from your Registered Retirement Savings Plan (RRSP) to your FHSA without any immediate tax consequences.
This is as long as it’s a direct transfer, (not withdrawn, then re-contributed) and does not exceed your available unused FHSA participation room at the time of the transfer.
Note: You are not able to transfer cash or investments from your RRIF to your FHSA.
Please keep the following points in mind if you choose to transfer from an RRSP to an FHSA:
- Transfers must be made directly from the RRSP, not withdrawn and re-contributed.
- Transfers from RRSPs to FHSAs are not tax deductible.
- Transfers from RRSPs to FHSAs will not restore your RRSP’s contribution room.
- Transfers from RRSPs to FHSAs use up the same contribution room as a new contribution.
Transfers from a Spousal RRSP
Just like transfers from an individual RRSP, transfers from a Spousal RRSP (SRSP) to an FHSA can be made without immediate tax consequences.
All the rules from transferring in an RRSP apply to Spousal RRSPs as well, plus there is one additional rule:
You are not permitted to transfer assets from an SRSP to an FHSA if your spouse or common-law partner contributed any amount to the SRSP in the same year as the transfer, or the previous 2 calendar years.
For example: If you last contributed to your spouse or common-law partner’s SRSP in 2020, and they decide to open an FHSA in 2023, you’re able to transfer assets without penalty. If the original contribution was in 2022, you will have
to wait until 2025 to transfer.
Transfers from a TFSA
Transfers of cash or assets from a Tax Free Savings Account (TFSA) into an FHSA are treated the same way as a new contribution from a bank account.
As always, make sure you have the contribution room available in your FHSA before starting a transfer of cash or investments from your TFSA.
Please note that this type of transfer will temporarily decrease your TFSA contribution room for the year, as it constitutes a withdrawal from your TFSA.
Explore this article for more information about transferring out of a TFSA.