Year-End Reminder: FHSA Contribution Deadline for 2023 - Act by December 31
As the holidays draw near, it's a time for celebration and planning ahead. Amidst the festivities, let's consider a smart financial move before the year ends!
The First Home Savings Account (FHSA) offers a practical path towards homeownership and other financial goals. Opening an FHSA before the new year comes with tax benefits and a chance to work towards owning your dream home.
For those eyeing homeownership soon:
Contributions to the FHSA are tax-deductible, reducing taxable income while saving for your home.
Money invested in the FHSA grows tax-free, providing tax-free returns for a qualifying home purchase.
The account allows contributions up to $8,000 annually, with a lifetime limit of $40,000.
Even if you're uncertain about owning a home:
You have 15 years to decide, with the FHSA offering flexibility in exploring homeownership options.
Unused funds can be transferred to an RRSP without facing taxes (considering there is available RRSP contribution room).
The Home Buyers' Plan (HBP) is a program that allows you to withdraw from your registered retirement savings plans (RRSPs) to buy or build a qualifying home. Currently the HBP withdrawal limit is $35,000.
Note:
You can withdraw amounts from your RRSP under the HBP and make a qualifying withdrawal from your first home savings account (FHSA) for the same qualifying home, as long as you meet all of the conditions at the time of each withdrawal.
Don't miss this chance to secure your financial future! Reach out to Jen at Thaker Financial before the year ends to explore how the FHSA can shape your financial goals. Wishing you a joyful holiday season filled with peace, prosperity, and plans for a secure future! 🏡✨
Reference - https://ia.ca/advice-zone/finances/is-the-fhsa-for-you
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/what-home-buyers-plan.html
Disclaimer:
The information provided in this blog post is for general informational purposes only and should not be considered as professional financial advice. The content of this blog post may not be suitable for every individual's financial situation or goals. It is important to consult with a qualified financial professional or advisor, like Jen at Thaker Financial, before making any financial decisions or investments.
While the author strives to provide accurate and up-to-date information, she cannot guarantee the completeness or accuracy of the content. Financial markets and regulations are constantly evolving, and readers should independently verify any information presented here and consider it in conjunction with their own research and analysis.
The author and Thaker Financial shall not be held responsible for any losses, damages, or liabilities that may arise from the use or reliance on the information provided in this blog post. Readers are solely responsible for their own financial decisions and should exercise caution and due diligence before taking any actions based on the content presented here.
By reading this blog post, you acknowledge and agree that the author and Thaker Financial are not liable for any consequences, financial or otherwise, that may occur as a result of your interpretation or use of the information provided.
