How and when to withdraw FHSA
30 Dec 2023 · 0 min
0:21
In this short bilingual (Hindi‑English) video, the speaker explains the rules for withdrawing money from a First Home Savings Account (FHSA). Withdrawals are allowed for a first‑time home purchase or for other purposes, but if the funds are taken for an emergency or non‑home‑related need, the withdrawn amount is added back to the taxpayer’s taxable income. This can push the individual into a higher tax bracket (e.g., 20%, 30%, 40%) and result in a larger tax bill. Consequently, the speaker advises that FHSA withdrawals should be reserved primarily for buying a first home to avoid unnecessary tax liability.
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