Can an individual who does not have a FHSA and who does not qualify as a “qualifying individual” at the time of the transfer as a result of a relationship breakdown described in s. 146.6(7)(a)(ii) open a FHSA to receive the transfer from the individual’s spouse's or former spouse's FHSA? If not, does this mean that the tax-free transfer can only be made to the spouse's or former spouse's RRSP or RRIF?
CRA indicated that if, at the time the transfer is to be made, the transferee individual does not already hold a FHSA and is not a “qualifying individual” so that the individual is not eligible to open up a FHSA, then the transfer cannot be made to a FHSA, and can only be transferred directly, within the specified limits, tax-free to the individual's RRSP or RRIF.