another question on moving rrsps

[nelsona]

Only when you take the withdrawal. AS I mentioned, you want to convert to RRIF in the year BEFORE you take any withdrawals to benefit from the periodic pension rate.

[eortlund]

Very good. The bank is saying we have to physically sign papers, which we can do right before we go. But I am wondering if we can move the RRIF somewhere else even once we are gone. It's good to know that these questions won't affect the tax rate we get from Canada as long as we are non-resident when we take our first withdrawal in the next year.

[nelsona]

RRIFs can be moved to any brokerage that would accept you as UK residents, even while not physically in Canada. However, if you feel compelled to move to another brokerage, I would be doing this while a resident (before or after creating RRIF doesn't matter).

There is no timing issue here. Create the rrif as soon as practical, don't want until "right before you go", especially if you are considering dropping your trustee.

[eortlund]

Thanks. It's just that my husband gets paid through July 31 complete with RRSP contributions. So how could that work if we converted to an RRIF before that? We will be in the UK by August 1.

Thinking of moving from RBC to RBC Direct Investing. They said i'd have to change to an RRIF at the main branch and then transfer that to them.

[nelsona]

You will need to discuss this with your the brokerage you intend to deal with. THEY will be motivated to get you as a customer, and if they are not, walk over to TD Direct investing and they will gladly handle the transfer.
Everything can be in place long before the RRSP is moved or converted.

[nelsona]

I think the mistake you might be making is to continue talking to your current manager. You need to talk to the people that WILL BE your manager.

[eortlund]

Thanks! I will try to get more info from RBC Direct Investing and see what they say.