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

Yes, the FHSA contribution limit of $8,000 per year must be respected. There’s a 1% penalty per month on the excess contribution amount, calculated based on the highest excess amount during the month. Unlike the RRSP, the FHSA does not provide a $2,000 buffer before penalties apply. The excess amount is subtracted from the contribution limit on January 1 of the following year.