RRSP
Moderator: Mark T Serbinski CA CPA
RRSP
Hi,
I moved from Canada to the US 10 years ago. I had about $20000 in a RRSP. I have been cashing out the last 3 years to the amount of $ 5000 per year and gave the money to my parents each time. That money was already in my Canadian account before I moved to the States. Do I need to declare it? If so how to I proceed with that.
Thanks
Mike
I moved from Canada to the US 10 years ago. I had about $20000 in a RRSP. I have been cashing out the last 3 years to the amount of $ 5000 per year and gave the money to my parents each time. That money was already in my Canadian account before I moved to the States. Do I need to declare it? If so how to I proceed with that.
Thanks
Mike
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Hi Mquinn, you would at the very minimum need to file Form 8891 and FinCEN Form 114. You may also need to file Form 8938 if you have other non-US holdings exceeding the threshold amount.
Look into the following websites.
http://www.irs.gov/uac/Form-8891,-U.S.- ... ment-Plans.
http://www.irs.gov/uac/Form-8938,-State ... ial-Assets
http://www.irs.gov/Businesses/Compariso ... quirements
http://www.fincen.gov/forms/bsa_forms/
Look into the following websites.
http://www.irs.gov/uac/Form-8891,-U.S.- ... ment-Plans.
http://www.irs.gov/uac/Form-8938,-State ... ial-Assets
http://www.irs.gov/Businesses/Compariso ... quirements
http://www.fincen.gov/forms/bsa_forms/
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- Joined: Thu Mar 24, 2005 6:17 pm
- Location: Seattle, WA
RRSP: 8891 and FATCA FINCen 114
My question is a little different. I am a citizen of both Canada and the U.S. and resident of the U.S., where I continue to work full-time (i.e. taxable resident of U.S.). I moved to U.S. to work in 2005 (and became naturalized in 2014).
I have reported the value of my (and my spouse's) RRSPs on 8891 faithfully from 2005 through 2012. The RRSPs are worth more than $50,000 and we do not take any distributions from them.
I have never reported those RRSPs on FATCA/FINCen 114, and I never thought of it until now (because I'm doing my 1040 for 2013). I suspect that I do have to file FATCA/FINCen 114 for those RRSPS (even though common sense says it is duplicative of 8891), right?
There is no tax due, so I hope I won't be fined. Is that a reasonable expectation? Grateful for any advice.
I have reported the value of my (and my spouse's) RRSPs on 8891 faithfully from 2005 through 2012. The RRSPs are worth more than $50,000 and we do not take any distributions from them.
I have never reported those RRSPs on FATCA/FINCen 114, and I never thought of it until now (because I'm doing my 1040 for 2013). I suspect that I do have to file FATCA/FINCen 114 for those RRSPS (even though common sense says it is duplicative of 8891), right?
There is no tax due, so I hope I won't be fined. Is that a reasonable expectation? Grateful for any advice.
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- Joined: Thu Mar 24, 2005 6:17 pm
- Location: Seattle, WA
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what nelsona is saying is that: for 10 years you did not make an election to defer income in your RRSPs.
if your RRSPs grew, those gains were subject to taxes.
Even if they grew just a little bit and the gains were tiny, you were still liable to have made an election.
Then there's a BS of fbar. You can probably rectify it. But get to it is what nelsona is saying.
if your RRSPs grew, those gains were subject to taxes.
Even if they grew just a little bit and the gains were tiny, you were still liable to have made an election.
Then there's a BS of fbar. You can probably rectify it. But get to it is what nelsona is saying.
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worryfreeinvestor: Since you have faithfully filed the 1040/8891 forms regarding these accounts and their income, they will not fine you for failure to file the FBAR forms, assuming you plead reasonable cause and they agree. But you need to back file the FBAR forms immediately. As of last July 1, it is now required to do this electronically through FinCEN. I think I remember reading there is now an opportunity to add your reason for late filing (reasonable cause); you will tell them that you have only just become aware of the requirement, but have filed all income and 8891 forms required. (If you can't add that yet, just submit through FinCEN, and respond with the reasonable cause letter if they get back to you).
Remember that once the need for FBAR is triggered, you need to report ** all ** your foreign accounts, even those with minimal amounts in them.
Remember that once the need for FBAR is triggered, you need to report ** all ** your foreign accounts, even those with minimal amounts in them.
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