Moving funds from US to Canada

BenR · Post by **BenR** » Thu Aug 04, 2016 4:17 pm

I am a US citizen who moved to Canada 23 years sgo. I have two accounts with Wells Fargo Advisors, an IRA and an investment account. I got away with this until recently by using my sister's address on the accounts (I know, I should not have done this, but I did, because our WFA advisor has been with the family for decades and we like his approach).

Now they have found me out, and I will soon be forced to move the accounts. The IRA is not a big problem, I can establish an account with TD Ameritrade for that.

I also have an account with about US$122K in stocks and bonds. I may be able to do something with Pacifica Partners or Cardinal Point. However, in case I decide that it would be better to move the funds to Canada, are there any implications in moving that amount of money all at once? Other than possible capital gains if I have to sell the assets first, is there anything else I should be aware of?

I have tried to research this in the forum and Google and turned up nothing.

nelsona · Post by **nelsona** » Thu Aug 04, 2016 5:10 pm

If it is stocks and bonds, you should be able to move these to any Cdn brokerage, as any account can hold these.

Any Cdn broker can initiate the paperwork to get the investment transferred to them.

the only problem would be US mutual funds, which would have to be sold unless you used a broker like the ones you mentioned who "straddle" the border. But even they would have trouble maintaining an non-sheltered investment account containing US mutual funds for a Cdn resident, in my opinion.

As to the IRA, as you say, you *should* be able to find another firm, but really this usually done before leaving US. Most firm are reluctant to take on new non-resident clients for IRAs, unless the client is inheriting an IRA held by them.

BenR · Post by **BenR** » Thu Aug 04, 2016 5:17 pm

Thanks for the quick response, Nelson. There are no mutual funds involved.

As to the IRA, I have initiated the process of setting up an account with TDA as a non-resident dual citizen, and it seems to be going OK. If you try to create a non-IRA account, you don't get past the first screen because it asks for a US state, with no provision for non-US residence.

nelsona · Post by **nelsona** » Thu Aug 04, 2016 9:06 pm

Thanks for the tip about TDA; many folks face a problem with finding a willing brokerage for their IRA/401(k) when leaving.

nelsona · Post by **nelsona** » Thu Aug 04, 2016 9:09 pm

Thanks for the tip about TDA; many folks face a problem with finding a willing brokerage for their IRA/401(k) when leaving.

BenR · Post by **BenR** » Thu Aug 04, 2016 10:08 pm

You're welcome, Nelson. The process is not 100% complete, but all looks OK so far. I'll let you know how I make out.

I've also discovered another possible avenue. Anyone who is a member of American Citizens Abroad can open an account with the State Department Federal Credit Union. This gives you a number of banking options and also Financial Planning/Investment services through their partnership with Securities America. I haven't investigated it in any depth, but it might be worth looking into.

nelsona · Post by **nelsona** » Fri Aug 05, 2016 9:02 am

The problem is with Cdn securities laws. US brokerages are not allowed to deal with Cdn residents without a provincial license. That is why Wels is kicking you out. You put them regulatory jeopardy by faking address.

nelsona · Post by **nelsona** » Fri Aug 05, 2016 9:03 am

Talking non-retirement accounts here.

BenR · Post by **BenR** » Fri Aug 05, 2016 5:21 pm

Yes, we know that now. At the time (2002) we simply thought the firm's system was not set up for Canadian addresses and used my sister's address as a workaround. None of us were aware of the regulatory situation at the time.