Moving from Canada to US: what to do with RRSP and RESP

Yves31 · Post by **Yves31** » Tue Jun 09, 2009 6:45 pm

Hi,
We are finalizing the move from Canada to US. We have some RRSP and RESP in Canada. Do we have to move them to US now, or can we deal with them sometime in the future? What are the general rules for RRSP?
Thank you for your advice.

tonyb99 · Post by **tonyb99** » Thu Jun 11, 2009 6:23 am

I am in the same situation. I found that if your RRSPs are with a broker who is registered in the state you move to you are ok. Otherwise you will be restricted to being able to only sell items, not buy. I moved my accounts from RBC to TD Waterhouse because they seem to be the most familiar with the situation and have the best coverage in the US.

eortlund · Post by **eortlund** » Thu Jun 11, 2009 4:08 pm

Hopefully Nelson will answer, but one thing that has stuck in my mind is that it is beneficial to "step up" (I think that's the term) your RRSP before you leave Canada. I think it reduces the amount the IRS can tax the RRSP when you start to withdraw.

nelsona · Post by **nelsona** » Mon Jun 15, 2009 4:08 am

RESPs are not recognized by IRS as shelters, so you will need to pay tax every year on the internal income. Moreover, RESP accounts arenot covered by the regs that permit Cdn brokers to deal with US residents, which is strictly for RRSPs (and only for some brokers).

So, your RESP is pretty much going to be hands off while in US, and taxable.