The Newest ‘Tax-Free Saving Account’ – How young adults (and even their parents) can take advantage

Wealth Professional
April 19, 2023.

Lynn MacNeil, Associate Investment Advisor, Associate Portfolio Manager with Richardson Wealth writes that the new First-Home Savings Account (FHSA) has some attractive features.

“This FHSA opens up new opportunities for tax saving strategies as long as you have never purchased a home, and even if you don’t plan to. [It] also creates opportunities to pull money out of RRSPs tax-free without the need to repay the withdrawals as in the case of the Home Buyers’ Plan, assuming you do buy a home.”

“…not only can you deduct your contributions from your income, thereby reducing your taxes, but the amount in the plan can be withdrawn for a first home purchase with no taxes and doesn’t have to be repaid.”

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