What is Form RC721?
Form RC721 is an essential document provided by the Canada Revenue Agency (CRA) for transferring funds from a First Home Savings Account (FHSA) to another FHSA, a Registered Retirement Savings Plan (RRSP), or a Registered Retirement Income Fund (RRIF). This form allows FHSA holders to move their savings without facing immediate tax implications, provided the transfer stays within their unused FHSA participation room. Properly filling out this form ensures that the transfer is accurately recorded and can be verified by the CRA when necessary, making it a vital tool for effective fund management.
What is Form RC721 used for?
Form RC721 is important for managing your First Home Savings Account (FHSA) funds. Here’s what it allows you to do:
- Direct Transfer: Move funds from your FHSA to another FHSA, RRSP, or RRIF without tax penalties, as long as you stay within your unused FHSA room.
- No Tax Impact: The amount transferred won’t affect your unused FHSA participation or RRSP deduction room.
- Excess Amount Handling: If you transfer more than allowed, only the excess is taxed as a withdrawal and counts as a new RRSP contribution.
How to fill out Form RC721?
- 1
Fill out Part 1, Part 2, and Part 3 of Form RC721 as the FHSA holder.
- 2
Provide the completed form to the FHSA or RRSP issuer or RRIF carrier receiving the property.
- 3
The receiving issuer or carrier fills out and signs Part 4.
- 4
The receiving issuer or carrier sends the form back to you.
- 5
Complete and sign Part 5.
- 6
The receiving issuer or carrier finalizes and signs Part 6 after receiving the property and the form from you.
Who is required to fill out Form RC721?
Form RC721 must be completed by the FHSA holder, who fills out Parts 1, 2, and 3. This form is then given to the FHSA or RRSP issuer or RRIF carrier, who fills out Part 4.
After completion, the form is used by individuals transferring property from their FHSA to another FHSA, RRSP, or RRIF, including transfers related to marital breakdowns or death.
When is Form RC721 not required?
Form RC721 isn't needed for direct transfers between your own FHSAs, as these do not affect your unused FHSA participation room. Additionally, you don't need this form for transfers from your FHSAs to RRSPs or RRIFs if you don't have any excess FHSA amount.
When is Form RC721 due?
The deadline for Form RC721 is the end of the first calendar year after the death of the FHSA holder for transfers after death. For direct transfers to another FHSA, RRSP, or RRIF without immediate tax consequences, there is no specific deadline. Make sure to complete the transfer within these timeframes to avoid any tax issues.
How to get a blank Form RC721?
To get a blank Form RC721, simply visit our website. The Canada Revenue Agency (CRA) issues this form, and we have it pre-loaded in our editor for you to fill out. Remember, PDF Guru aids in filling and downloading but not filing forms.
How to sign Form RC721 online?
To sign Form RC721, which facilitates the transfer from your FHSA to your FHSA, RRSP, or RRIF, you can opt for a handwritten signature, a certificate-based digital signature, or an electronic signature that complies with legal standards. Remember to check for the latest updates on signing requirements. After filling out the form using PDF Guru, you can easily download it for your records, but note that submission must be done separately.
Where to file Form RC721?
To file Form RC721, submit the completed form to your financial institution. They will complete Part 4 and return it to you.
Keep a copy for your records. Remember, this form cannot be filed online—submit it by mail or in person to your financial institution.
