Serbinski Accounting Firms

Another question: does it matter if we are still in Canada or non-resident when we convert the RRSPs to RRIFs, or does it only matter that we are non-resident when we take our first withdrawal?

OK thanks, we will be sure to do that

If we keep the same funds, but convert the RRSP to a RRIF, is that sufficient for crystallizing the gains? Or is it important to actually change funds?

Thanks for helping me think this through. Hard to turn down the 0% withdrawal rate which is certain for RRIFs for UK residents,, when the other factors are hard to predict.

I guess I was wondering if we would have to pay much to the UK if they only tax gains since becoming resident. But perhaps they would tax the whole thing. The link I posted is in the HMRC archives so i'm not sure if anything has changed. Perhaps it is better to take smaller RRIF payments and then if ...

Thanks.

It has been kind of bugging me that this process is going to take 15 years. If the UK will give each of us an exemption for capital gains of 11000 pounds per year, wouldn't that cover tax due there on a total collapse of RRSPs equalling 80k CD? I suppose if they tax it like income, at 20 ...

OK, so when the funds are changed over and we become non-resident, I need to look at the amounts in each fund, keep a record of it, and that crystallizes the gains? Is that it?

I asked the bank about stepping up the cost basis. They said switching funds would not accomplish this, I would need to actually sell and pay tax on everything first? So she said that couldn't be done with an rrsp. ?

Got it! Will switching the funds before we leave and noting the value of each one be sufficient?

The UK has a capital gains exemption that I believe will be 11000 pounds for us so I wonder if we really will need to pay them anything.

Thanks so much nelsona! Dealing with 3 countries is making my ...

I see what you're saying. I guess I had wondered if they had different rules for the RRIF than the lump sum withdrawal because of the treaty?

One more thing: Why does crystallizing the gains in the RRSP matter? Will it result in less tax to the US? The UK?

It is still a little unclear to me, when they say annuities is that the same as an RRIF?

The bank has told me I should call every December to make sure the proper amount is taken out and not more.

Sorry I didn't see you already answered that question about the carryover tax credits.

Yeah, our carryover credits are all general so far. I may just have to pay the US whatever it wants, while knowing it is still better than paying to Canada and the UK (if we don't have to pay the UK).

Thanks! I am writing all this down.

So you think that the periodic pension payments will not be taxed by Canada, and not by the UK either at withdrawal? I thought we would have to pay tax to the UK which is why Canada won't tax us? But then maybe that's because the UK taxes the gains as we go ...

I did read that if the UK wanted to tax the rrsp gains, there is a capital gains exemption that comes into play. But the bigger it grows, perhaps the gains would exceed it?

Thanks. I read that on the HMRC website but may be misunderstanding. http://webarchive.nationalarchives.gov. ... im1622.htm

If I couldn't get us credit for taxes paid to the UK, could I use excess foreign tax credits I've accumulated over the years?