Deadlines and closing your FHSA
An FHSA is not open-ended. It has a maximum participation period, and the CRA recommends closing all of your FHSAs before that period ends, to avoid unintended tax consequences. Three different clocks can end the period, and the earliest one wins.
The maximum participation period
Your maximum participation period begins when you open your first FHSA and ends on 31 December of the year in which the earliest of the following events occurs: the 15th anniversary of opening your first FHSA; the year you turn 71; or the year following your first qualifying withdrawal from your FHSAs. After a qualifying withdrawal, for example, you should close all of your FHSAs on or before 31 December of the year following the withdrawal year, because the period ends then, even if money is still inside.
| Trigger | Example |
|---|---|
| 15th anniversary | Opened in 2026: period ends 31 December 2041 |
| Turning 71 | Turn 71 in 2045: period ends 31 December 2045, if earlier than the 15th anniversary |
| Year after first qualifying withdrawal | First qualifying withdrawal in 2030: close by 31 December 2031 |
If you never buy a home
If the period ends and you have not bought a qualifying home, you have two options for the balance. You can transfer it directly to your RRSP or RRIF, tax-free and without using RRSP room, using Form RC721, which is the option most people should take. Or you can withdraw it as taxable income, with tax withheld at source that you can claim as a credit on your return for the year. What you cannot do is leave the money sitting in the FHSA past the period: amounts left in a ceased FHSA are deemed received and taxed, so closing on time is not optional.
Other deadlines to keep
| Deadline | Rule |
|---|---|
| 31 December each year | Last day for FHSA contributions for that calendar year; no 60-day rule |
| Written agreement | Acquisition or construction completion before 1 October of the year following the withdrawal year |
| 30 days | You must not have acquired the home more than 30 days before a qualifying withdrawal |
| One year | Occupy or intend to occupy the home as your principal residence within one year after buying or building |
| Schedule 15 | File it for the year you opened your first FHSA, even with no contributions |
The year-after-withdrawal trap
Taking a qualifying withdrawal does not just empty the account: it starts the clock on whatever stays in it. Leftover growth, a second FHSA you forgot about, or a refund that lands later all need to be out by 31 December of the following year. Diary the closing date on the day you withdraw, not at the end of the following year.
Sources: Canada Revenue Agency, Withdrawals and transfers out of your FHSAs (maximum participation period, closing after a qualifying withdrawal); Canada Revenue Agency, Definitions for FHSAs; Canada Revenue Agency, Important dates for RRSPs, HBP, LLP, FHSAs and more.