RDSP and US Taxation

lisah · Post by **lisah** » Thu Jan 28, 2010 7:48 pm

Hi,
I have an RDSP. In 2008 I was a resident of Canada and it was easy to deal with.

Now I am a Canadian citizen, but I have been in the US for 1 year and I now have a spousal green card. For 2009 I will be taxed as a US Resident because of the time spent here. I have no US income. All my savings and investments are currently in Canada. My husband lives here, and is a US citizen (with no Canadian residency/citizenship).

How I report my RDSP on my US tax return for 2009 and going forward? If I continue to add money to it? If it just sits there earning money? (Which I have a suspicion will be treated much the same as RRSPs, in which i am unable to do anything but hold or sell the money in the account). I have not yet filed a departure with the CRA because until today I was unaware I needed to)

We were thinking of filing jointly in the US so that my husband will be taxed under those terms, instead of married filing separately.

I am not certain when I will return to Canada-- so the money could sit there until I retire. It is possible I will return in 2 years.

I am guessing it would be treated like a TFSA, but I am uncertain how to go about confirming this.

Any thoughts on this would be appreciated.

~
Lisah

nelsona · Post by **nelsona** » Thu Jan 28, 2010 8:40 pm

You probably cannot continue to add money to the RDSP while a non-resident of canada.

I'm afraid that it is NOT taxed the same as an RRSP, since it is not an RRSP. It is taxble in US on any growth.

A TFSA is also taxed in US on any growth, interst etc.

Neither are recommended for those living in US.