This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.
I was born in the US, but I have been living in Canada for 20 years (I am a Canadian citizen). I currently file a Canadian and US tax return. I am planning to move to Florida and I am concerned about the tax implications with my RRSP's and my TFSA. I manage my own RRSP and would like to know what would happen to it , if I move to the US? Does it collapse? Would I be taxed on it? Is there any exemptions allowed if I decide to only move to the US for 3 - 4 years? I am unable to find these answers and would like to know what I can do to best protect my savings. Thank you
The RRSP will have to be frozen but not cashed in and will be reported to teh IRS annually from date of arrival it is not taxed while you live in teh US nor will Canada tax it on deprture. The TFSA will result in tax since it is tax free in Canada but not US cash it in before you leave Canada
What does it mean if my RRSP is frozen? What would happen to my investments in that account? Since I manage it myself. Also, what if I choose to stay in Florida permanently after the 3 - 4 year period, what would the implications be then? How long can an account be frozen for? Thank you.
You need to transfer the RRSP to a broker in canada allowed to deal with FL residents.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best