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Tax and Accounts

FHSA (First Home Savings Account)

Registered account combining tax-deductible contributions with tax-free withdrawals for a first home.

Definition

Introduced April 1, 2023. Annual contribution limit $8,000 (carry-forward up to $8,000), lifetime limit $40,000. Contributions are tax-deductible (like an RRSP); qualifying withdrawals to buy a first home are tax-free (like a TFSA). Account must be closed by the end of the 15th year after opening or age 71, whichever is earlier.

Source

Income Tax Act; Department of Finance Canada FHSA backgrounder

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