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Is there a penalty if I go over the FHSA’s contribution limit?

Yes, the contribution limit of $8,000 per year must be respected:

  • There’s a 1% penalty per month on the excess contribution amount. This penalty is calculated based on the highest excess amount during the month.
  • Unlike the RRSP, the FHSA doesn’t provide a $2,000 buffer before penalties apply. The contribution limit must be respected at all times.
  • On January 1 of the following year, the excess amount is subtracted from the contribution limit.


Here’s an example:

You contributed $10,000 to your FHSA on November 15, 2023. Since this contribution exceeds the annual limit of $8,000 by $2,000, you’ll have to pay a penalty of $40, which is 1% of the excess for two months (1% x $2,000 x 2 months). That extra $2,000 will then be subtracted from your contribution limit for 2024, which will now be $6,000.

To learn more, visit the Canada Revenue Agency website.

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