RRSP, TFSA, non registered brokerage account

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.

Moderator: Mark T Serbinski CA CPA

Post Reply
Posts: 10
Joined: Sat Oct 17, 2020 6:07 pm

RRSP, TFSA, non registered brokerage account

Post by Sid »

Hello Everyone,

I have been reading different posts about this topic, but the posts are few years old, i was wondering if anything changed.I am Canadian citizen, will be working on TN starting January 2021. I understand that the experts are suggesting to close down the TFSA and Non registered accounts. Is this correct or anything has changed?

I have about $14000 in TFSA in the form of US and Canadian stocks at Questrade brokerage, i was thinking of moving those shares into RRSP account , since it has less reporting requirements, like 8939 and FBAR ( I have more than 10K funds in Canadian bank accounts).I have 22K contribution room in the RRSP, can i contribute all in the RRSP to max it out?

is TFSA still considers a "Trust" account and reporting requirements not worth it? So, what i am thinking to do is right?

It is easier to close every account down if you are moving permanently on a Green Card. But since TN is a temp visa, making such a drastic step is not easy. Nelson , has been very informative and others as well. I'd like to know whats the best solution in my case? Also, in form 8939, do we list each and every stock we hold in RRSP? if you have two RRSP, do you list both RRSP accounts and their holdings individually? My understanding is you pay Tax to IRS on distribution and dividents on RRSP . Do you also pay capital gain when you sell shares while you are a US tax resident? Can you buy shares on RRSP while in the US as a tax resident?

can I open a US brokerage account in US while in TN? if i trade on that account and in the future come back to Canada, can i keep those stocks in the US brokerage account? I understand i wont be able to trade them.

I have a piot of Land outside of North America, I bought it for about $100,000 USD few years ago. DO i need to include that on 8938? I read somewhere that if it not bought through corporation , then you don't include that on 8939. I bought it from Housing authority , not sure if they are corp.

whats the difference between TDF 90.22.1 and FBAR? They ask for the same information? which one I will be required to file ?

I am not sure about departure tax that people have mentioned in other threads. Is it only applicable to Investments like stocks? How can i do departure if i am not sure how long i will be in the US? If someone can clarify that and maybe tell me the best strategy, i would be grateful.

Posts: 17153
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: RRSP, TFSA, non registered brokerage account

Post by nelsona »

Nothing has really changed.

It is a good idea to close TFSA, since it is not tax-free in US, and may have other onerous reporting requirements, including PFIC .

RRSP are still subject to FBAR, since yoy have more than $10K total ALL your accounts, ALL are thus reportable, FBAR is the generic term. FinCen replaced the TD form.

You cannot manage a CDn brokerage accont while in US.

Other maY weigh in on FATCA and trust issues.
nelsona non grata. Non pro. Search previous posts. Happy Browsing :D
Post Reply