Lesson Transfers between Questrade accounts

Transfers into an FHSA

Discover the best practices for moving cash and investments into your tax-free First Home Savings Account.

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Purchasing a first home is a very exciting milestone for many Canadians, and the tax-free First Home Savings Account (FHSA) is an invaluable tool to help make this dream a reality.

In this article, we'll guide you through the process of transferring cash and investments into your FHSA, ensuring you take full advantage of this new powerful account. From understanding the basics to mastering the ins and outs of asset transfers, we'll equip you with the knowledge you need to optimize your home-buying journey.

Especially if it’s a new account, before you explore how to transfer cash and/or investments into an FHSA, make sure that you meet the qualifying criteria for a first-time home buyer.

Contribution room

Before you transfer cash or investments into an FHSA account, it’s important to take into consideration your contribution room.

In the first year you open a FHSA, your contribution room is $8,000 Canadian Dollars (CAD). For the next 4 years you will unlock an additional $8,000 in room every year on January 1, up to the lifetime FHSA contribution limit of $40,000 CAD.

Note that you can only carry forward a maximum of $8,000 CAD in unused FHSA contribution room.

You can learn more about your contribution room for your FHSA account in our comprehensive FHSA 101 article, or on the CRA website.

Please note: Transfers in U.S. Dollars are treated as the Canadian Dollar equivalent for contribution room purposes. This is based on the exchange rate on the date and time of your transfer request.

Transfers from other Registered plans (RRSP, TFSA, RRIF)

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This is as long as it’s a direct transfer, (not withdrawn, then re-contributed) and does not exceed your available unused FHSA participation room at the time of the transfer.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.

Transfers from Margin accounts

Transfers of cash or investments from a Margin account into an FHSA are treated the same way as new contributions.

You’re able to transfer cash or investments to your FHSA from your Margin account as long as you don’t exceed the maximum FHSA contribution room available to you.

Note: Transferring investments (securities) out of a Margin account may have tax implications, please explore the article below, or consult with your own tax advisor for more information.

Explore this article for more information on transfers out of Margin accounts.

Transfers from one FHSA to another FHSA

Transfers of cash or investments from one FHSA to another FHSA can be made without immediate tax consequences as long as:

  • Both FHSAs are held by the same individual.
  • It’s a direct transfer (not a withdrawal and re-contribution).

Transfers from one FHSA to another will not reduce your unused FHSA contribution room.

Transferring cash into an FHSA

When you request to transfer cash into your FHSA account, this request can be made in either Canadian (CAD) or U.S. dollars (USD) since all Questrade accounts support both currencies.

However, a contribution into an FHSA denominated in USD will be calculated at the CAD-equivalent amount for tax reporting purposes (at the time of the deposit).

Before you request to transfer USD cash into an FHSA, please double check that the CAD-equivalent amount of your contribution does not exceed your contribution limit.

For example: Your FHSA participation room is $8,000 CAD and you make a contribution of $5,000 USD by transferring cash from your TFSA, RRSP, or Margin account.

When this is reported to the CRA and your contribution “slip” is created, this will be represented in the CAD amount on the day of the transfer/contribution. If the rate on the day of the request was 1.34, this contribution will be reported as $6,700 CAD equivalent ($5000 USD x 1.34).

Learn more about how to request a cash transfer between Questrade accounts in this article.

Transferring investments into an FHSA

You’re also able to request a direct transfer of qualified investments* from most other account types into your FHSA. Please keep in mind that these transfers will be counted as contributions. (Except FHSA to FHSA transfers)

The contribution amount is represented by the fair market value (FMV) of the investment on the date of the transfer request, and you have different options as to which price is considered the FMV depending on the type of investment.

Please speak to your accountant or tax provider to assist you with choosing the best available price for your personal tax situation.

Type of investment

Available prices

Stocks, Options and ETFs

High of the day, low of the day, or closing price on date of request

Mutual Funds

Closing price on date of request

Bonds

Closing price on date of request

Physical Gold/Silver

End of day price from the previous business day (Approximately 5:15 pm ET)

To indicate which price you’d like Questrade to use for determining your transfer amount, you can leave a comment on the request after it has been placed.

Simply click the “Request history” tab, and click “Add comment” for the request indicating which price you’re using.

Please note: If your investments have grown in value at the time of the transfer, depending on the outgoing account type, there may be additional tax implications to be aware of.

Explore the related articles in this lesson for more information on asset transfers.

Note: The information in this blog is for educational purposes only and should not be used or construed as financial or investment advice by any individual. Information obtained from third parties is believed to be reliable, but no representations or warranty, expressed or implied, is made by Questrade, Inc., its affiliates or any other person to its accuracy.

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