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What is a group FHSA?
A group FHSA is a registered savings plan designed to help future buyers save for the purchase of a qualifying home, in order to facilitate access to home ownership.
See the definitions of “qualifying home“ and “first-time home buyer“ on the Canada Revenue Agency (CRA) website.
In short, the group FHSA allows people to:
- Deduct the contributions they make from their annual taxable income, as with an RRSP. However, the FHSA contribution period runs from January 1 to December 31.
- Generate tax-free returns, as with the TFSA and RRSP.
- Use the funds as a down payment towards the purchase of a qualifying home in Canada.
Why offer the group FHSA?
- To give plan members a chance to optimize the growth of their savings with fees that are generally lower than with individual products. This means they can achieve their dream of home ownership faster, because they can usually benefit from the same fees as those offered under your other iA Financial Group group retirement savings plans.
- By making FHSA contributions through payroll deductions or pre-authorized debits, your plan members can save and perhaps even benefit from immediate tax advantages.
Benefits for the employer
- A differentiator that can help recruit and retain talent
- Shows your commitment to employees’ total wellbeing
- Affordable, flexible and easy-to-administer plan
Benefits for plan members
- Tax-sheltered contributions and savings for the purchase of a home
- Amounts withdrawn for the purchase of a first home are not taxable and do not have to be repaid
- Saving habit with payroll deductions
- Same access to My Client Space, iA Mobile and planning tools as other employer-sponsored group plans
Group FHSA – Group RRSP – Group TFSA: Which should you choose?
Opt for a flexible plan that supports the total wellbeing of your plan members.
| FHSA | RRSP | TFSA | |
|---|---|---|---|
| Main objective | Buying a first home | Savings and retirement | Miscellaneous savings |
| Secondary objective | Savings and retirement | HBP | Savings and retirement |
| Minimum age | Age of majority | None | Age of majority |
| Maximum age | 71 | 71 | None |
| Annual contribution limit | $8,000 per year $40,000 lifetime maximum |
18% of your previous year’s income or the current year’s annual limit | $7,000 in 2024 |
| Annual contribution period | January 1 to December 31 | March 1, 2024 to February 28, 2025 | January 1 to December 31 |
| Maximum participation period | Close on December 31 of the year in which the earliest of the following events occur: • The fifteenth anniversary of your first FHSA • The year following your first eligible withdrawal • Your 71st birthday |
Up to age 71 | None |
| Plan conversion | Can be transferred to a RRIF or RRSP with no implications | Possible with a RRIF, no later than age 71 | No |
What sets us apart
We’re invested in you and your plan members by offering innovative solutions focused on total wellbeing that promote an attractive, healthy and productive workplace. We focus on creating a simplified, personal client experience that offers peace of mind and puts listening, trust and technology at the heart of everything we do.
Symbiosis program
Combine your group insurance and group retirement savings plans in one place for a complete, streamlined experience.
Education website
This site is a showcase for group insurance and retirement savings plans and a reference for members. It is designed to provide guidance and support by helping them better understand how their plans work and the benefits they offer.
iA Mobile app
A tool designed to optimize the user experience and streamline online transactions, for group insurance as well as group savings and retirement. Plan members will find most of the features of My Client Space.
Frequently asked questions
How can the group FHSA enhance our group retirement savings program?
By adding the group FHSA to your benefits program, you're offering a savings solution that can meet the diverse needs of your employees. You'll be helping them save and maximize their downpayment using systematic savings via payroll deductions, if this option is available for your organization. You can help them achieve their financial and personal goals with complete peace of mind.
Integrating the group FHSA into your overall compensation and benefits strategy demonstrates your commitment to your employees' financial wellbeing.
What are the eligibility criteria for the group FHSA?
To enrol in the group FHSA, an individual must be a Canadian resident between the ages of 18 and 71 and must qualify as a future buyer of a qualifying home.
During the enrolment process, members will be notified of the group FHSA eligibility criteria and, when confirming their enrolment, will have to attest to their eligibility.
What is the contribution room for the group FHSA?
A maximum of $8,000 can be contributed per year, and up to $8,000 of unused contribution room can be carried forward from one year to the next. The maximum annual contribution is therefore $16,000 and the maximum lifetime contribution is $40,000.
These are the total amounts applicable to all FHSAs (group and individual) owned by an individual.
What investment options are available in the group FHSA?
You can offer the same investment options as your other registered group retirement savings plans.
What is the difference between the group RRSP, group TFSA and group FHSA?
The group FHSA combines the advantages of the group RRSP and the group TFSA. It allows individuals to save for the purchase of a qualifying home while reducing their taxable income and generating tax-sheltered returns.
The amounts accumulated in an FHSA can be used to finance the purchase or construction of a qualifying home without having to pay taxes on withdrawals, and without having to repay the amounts withdrawn, unlike with the Home Buyers’ Plan (HBP) associated with RRSPs.
Savings accumulated in a group FHSA that are not used to purchase a property can be transferred to an RRSP without any tax consequences or effects on the individual's contribution room. It is also possible to withdraw savings accumulated in a group FHSA to use for other purposes. Such withdrawals would be taxable.