RRSP return of contributions -

[Gyoung]

As a naturalized American and Canadian Non Resident for the past 24 years the time has come that I need to educate myself in regards to my pension/RRSP. I read in one of the topics that the part described as "return of contribution" can be excluded from income. This may be more simple but i have no clue as to how this all comes about.

Yes I am reporting these Canadian accounts on a yearly basis.

Thank you in advance.

[nelsona]

You would first need to know what your RRSP was worth when you first became a US taxpayer (presumably 24 yrs ago).

[Gyoung]

Actually I have that in black and white.

[nelsona]

OK, so each year you withdraw income, you will include a prorated amount of the withdrawal based on value when you arrived in US vs. its value today,

Example: It was worth $1000 when you left and know it is worth $3000. You withdraw $300. $100 is not taxable, $200 is. You have now reduced the non-taxable portion to $900. you use the $900 and the new total value to come up with the taxable amount the next year you withdraw.