🏡 RC720 Form – Transfer from your RRSP to your FHSA (Canada Guide)

The RC720 form is used in Canada to transfer funds directly from your Registered Retirement Savings Plan (RRSP) to your First Home Savings Account (FHSA). This process allows you to move savings without immediate tax consequences, provided you stay within your FHSA limits.

👉 Download official RC720 PDF from CRA

📥 How to Get and Use the RC720 Form

  • Download the fillable PDF and open it using Acrobat Reader (v10+)
  • Do NOT open it directly in your browser
  • Print version also available for manual completion
💡 User tip: Save a copy of every submitted RC720 form — your bank and future tax filings may require it.

🔍 What Does RC720 Actually Do?

This form enables a direct transfer (not a withdrawal), which means:

  • ✅ No immediate income tax on transferred funds
  • ✅ No withholding tax applied
  • ⚠️ The amount reduces your FHSA contribution room

It is a key tool for Canadians planning to buy their first home faster using existing retirement savings.

🧾 Step-by-Step: How to Fill RC720

  1. Enter your personal details (FHSA holder info)
  2. Specify the RRSP source account
  3. Indicate the transfer amount
  4. Sign and submit the form to your financial institution
  5. The institution completes the transfer process
⚠️ Important: Submit a separate RC720 for each transfer request.

📊 Key Rules & Limits (Must Know)

  • Transfers must stay within your unused FHSA participation room
  • Transfers are not tax-deductible
  • Funds moved do NOT count as RRSP withdrawals
  • RRIF → FHSA transfers are not allowed
📈 Smart strategy: Use RC720 to reallocate savings if you're planning a home purchase within a few years.
💸 Ad placement idea: Mortgage calculators or home-buying tools fit perfectly here.

🏦 Who Needs to Use RC720?

You should use this form if you:

  • Have an RRSP
  • Opened an FHSA
  • Want a tax-efficient transfer between them
❌ Not needed if: you withdraw funds manually from RRSP and contribute separately (this triggers taxes).

📉 Real-Life Example

If you transfer $8,000 from your RRSP to your FHSA:

  • No tax is charged immediately
  • Your FHSA contribution room decreases by $8,000
  • You preserve liquidity for a future home purchase
🧠 Engagement idea: Add a savings calculator widget here to estimate tax benefits → high CTR zone.

❓ Frequently Asked Questions

Do I need to send RC720 to CRA?

No. The form is handled by your financial institution unless requested by CRA.

Can I transfer multiple times?

Yes, but each transfer requires a separate RC720 form.

Will I get a tax slip?

You may receive an FHSA-related tax slip, but no RRSP withdrawal slip is issued.