Transfer CAN RRSP to a another financial institution non-res

[SnowyOwl]

Can I transfer (within RRSP envelope to avoid any taxes) my Canadian RRSP to another financial institution in Canada? Details:
1. I am a Canadian citizen. Lived, Worked and contributed to RRSP from 1986 to 2006.
2. Moved to US in 2006 to get married to my wife (US citizen). Living in US since 2006. Have permanent resident status (US green card).
3. I visit my parents who still live in Canada once or twice a year for 1-2 weeks duration.
4. Kept my RRSP with investment stock broker firm in Canada as returns were good, diversification from US dollar, no need for money AND our medium to long term plans are to immigrate back to Canada.
5. Performance returns of late have not met my expectations so I would like to roll-over or transfer the entire RRSP to another Canadian institution (either a bank or insurance company).

Can I do this ? My current investment firm seems to think no (obviously they don't want to loose a customer). Based on info from the Serbinski site, would US SEC "Order Granting Exemption In the Matter of the Investment Dealers Association of Canada" allow me to do this?

If so, where can I find a broker-dealer that is a "member"?

My goal is to roll-over or transfer the RRSP to a new firm AND be allowed to trade/make changes to the investments while I live in the US and am considered a Canadian non-resident.

Note: One Canadian investment firm said they can do it but I would have to use a Canadian address, they suggested to use my parents address. If they were a "member" then I feel I would not have to do that.

[nelsona]

Don't gp to any dealer that is asking you to lie about your whereabouts.

TD waterhouse is certainly in a position to do this.

Does your current broker know that you are in US?

Since the broker you had now was not really allowed to advise you on purchases, why do you thing they are to 'blame' for current performance?

Even if you are going to move back, before you do you will want to cash out your RRSP as you will never get a lower tax rate than 25%, and can easily put that money in another tax-free investment, like Roths and your home.

[SnowyOwl]

Thanks nelsona for your comments. Here is some more info.

The current RRSP held by a broker who is part of an investment firm. The service they provide is to manage a group of stocks to provide a target percentage long term gain. They do not call and ask my input on buys and sells. I pay a fixed percentage fee based on asset value and rely on the firm to keep long term returns within the percentage that they told me they aim for. I know there is no guarantee with stocks BUT comparing their rate of return with other investments I have, they are not where they should be. Performance is too close to TSE composite index in ups and downs. I can get that performance without paying a management fee. If we cannot resolve this issue, I want to be ready to transfer this RRSP to another CAN institution. I will call TD Waterhouse today and see if they are a "member" and can manage an RRSP for a non-resident.

My long term goal is to keep money within a tax free plan for use in retirement 10-15 years from now.

Prefer to keep the RRSP in Canada for diversification against falling US dollar in future and to avoid taxation. We plan to retire in Canada in the future as well.

The Serbinski site on "Canadian RRSPs Held by US Residents" has 2 paragraphs with differing views:

"No rollovers of Canadian RRSP’s to U.S. IRA’s or similar plans are advisable, since such a transfer would be considered a distribution under Canadian law, and would trigger taxation in both countries under the Convention. Accordingly, persons moving to the U.S. after a work period in Canada should consider leaving the RRSP intact, and drawing funds from the plan only upon retirement or as required by Canadian law."

"By withdrawing the RRSP funds while a non resident, generally the lower of the non resident withholding tax rate and the amount taxable under section 217 will apply, providing the individual with a unique opportunity to withdraw RRSP accumulations at much lower rates of tax than would otherwise be payable if they were to return to Canada as residents and have the withdrawals taxed in the normal manner."

I don't want to loose all the tax free benefits by making a wrong move. RRSP value is approx $300K, so even 25% tax means loosing $75K to tax (payable to Canada?), then does the $300K of liquidated RRSP get added to our family income in US so that we get taxed at a huge rate? Is this the double taxation?

[nelsona]

Have you been properly reporting your RRSP to IRS all these years? Then you should know that only a portion of your RRSP is taxable in US at withdrawal, and the Cdn tax you pay will cover most if not all of any US tax.
The 25% rate will be the best you ever get.

And, as I asked, have you told your broker that you live in US?

As to Cdn diversification, that is fine. You would be withdrawing the money just before coming back to Canada, so it would not by 'exposed' to US market aat all, if that is even a legitimate concern. there are foreign roths and investments.


Don't be confused by serbinski's outdated information. ALL cdn brokers are members of IFIC. the question is whether they have taken the steps to licese themselves in your state. Vey few have. Those that have not anbd continue to deal with you are jeopardizing SEC fines. That is wh yI'm questioning if you told your current broker that you lived in US.