US citizen who owns a RRSP

Peersd · Post by **Peersd** » Sat Oct 08, 2011 11:16 pm

I have lived in the US for over 20 years and though born in Canada, I am now an American. I have a RRSP account which I started as a young adult in Canada. I have not added or taken anything out of it since I moved to the US in late 80's. I left it in Canada and it has grown and is worth about $100,000
now. I have never filed an 8891 but have files the TD 90.22 for a number of years. What should I do now? Should I just start to file the 8891's a long with the TD 90.22 forms?
I have found it difficult to find any information regarding this in the US?
Thank you for any advice on this issue.

tsanaha · Post by **tsanaha** » Sun Oct 09, 2011 3:42 am

good you have filed FBAR. Remember FBAR has 6 years of statute limitation for civil penalty. Is your "a number of years" 6 ? I also assume that you list your RRSP in TD 90-22 form.

You need to make it up in case you want to file amend (f1040x plus f8891).

Peersd · Post by **Peersd** » Sun Oct 09, 2011 10:24 am

Yes I have listed the RRSP in the TD 90-22 as it is the only foriegn account we own. I have filed the TD 90-22 for atleast 6 years. So we will file amended 1040's for those years. Thank you

Peersd · Post by **Peersd** » Wed Oct 12, 2011 11:27 pm

I am also wondering if my RRSP in Canada is held in mutual funds, will the IRS want to tax this as a "trust" in a foriegn country or an investment in a "passive foriegn investment company"? I am told these new rules may mean I get taxed at the 50% rate.
Thank you again.

tsanaha · Post by **tsanaha** » Thu Oct 13, 2011 4:29 am

i think f8891 takes care everything that includes tax deferral and distribution.

nelsona · Post by **nelsona** » Thu Oct 13, 2011 5:07 am

RRSPs are specifically exempted from any of the PFIC requirements.

nelsona · Post by **nelsona** » Thu Oct 13, 2011 5:08 am

So, backfiling 6 years of 8891's should do you.

shsamardar · Post by **shsamardar** » Sun Oct 30, 2011 7:35 pm

Hi

I have a RRSP account within a a canadian firm that I had this since 7 years ago, that time I was living in Canada.
Since then, I am living in USA and they have my USA address.

Since 6 years ago that I moved to USA, I haven't done any transaction with account.

Suddenly I am receiving letter from them that they want to close my account and they say: it is due to legislative requirements in Canada and USA.

What should I do?

Thanks

tsanaha · Post by **tsanaha** » Sun Oct 30, 2011 9:46 pm

I do not know what kind company your RRSP is in. Mine are with TD bank. It is okay to keep RRSP but not to switch funds once becoming a US resident (such as using a US address) although I wish I were forced to close it long time ago.

nelsona · Post by **nelsona** » Sun Oct 30, 2011 9:50 pm

You should move your account to a broker that has complied with US regs. TD waterhouse is the only discount vroker that I know of.

That doe not solve your US reporting requirements. have you been filing 8891 and FBAR every year?

shsamardar · Post by **shsamardar** » Mon Oct 31, 2011 11:55 am

thanks for reply

Yes, I was reporting foreign bank statement and other form you mentioned.

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US citizen who owns a RRSP

US citizen who owns a RRSP

Did USA CANADA tax treaty for RRSP accounts change in 2011?