TD Waterhouse - checking citiizen instead of resident alien

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
marie999
Posts: 16
Joined: Thu Jun 01, 2017 6:26 pm

TD Waterhouse - checking citiizen instead of resident alien

Post by marie999 »

I'm a Canadian citizen but US resident on a TN and have been on many TNs over the years.
I realize this sounds dumb but I created a TD Waterhouse account probably 12+ years ago which was then converted by TD to a TD Ameritrade account probably 10+ years ago. I can't remember if they even offered a choice between being a US Citizen instead of a resident alien back then, but I see the new forms do.

I'm concerned that if I checked being a citizen instead of being a resident alien with my TN number, expiry date, etc. will this come back to haunt me so many years later or is there something I should do now while still a US resident?

Also when I return to Canada and tell them to convert the account to a Canadian resident, will this cause a problem for future periodic withdrawals?

Like I said it sounds dumb but it's got me worried.
Thank you.
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: TD Waterhouse - checking citiizen instead of resident alien

Post by nelsona »

Not a worry.
Unless it is an IRA, you will need to close the account soon after returning to Canada.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
marie999
Posts: 16
Joined: Thu Jun 01, 2017 6:26 pm

Re: TD Waterhouse - checking citiizen instead of resident alien

Post by marie999 »

Thank you Nelson for responding.

The TD account does have an IRA in it containing most of the account's value. It has been created over the years by putting money in and rolling over other IRAs into it. If I look at an old form I had for rolling an IRA in this one it does not specify citizenship, only that I'm a "US person (including a resident alien)". So I'm not sure what the old IRA form had on it. I've looked over the statements and it looks like the original TD Waterhouse IRA was started in 2005 and converted to TD Ameritrade (by them) in early 2007.
What's the best course of action?

Thank you.
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: TD Waterhouse - checking citiizen instead of resident alien

Post by nelsona »

Nothing. You are a resident alien for tax purposes. You were allowed to open and keep this account, and will be able to keep the IRA portion after leaving US, regardless of nationality. there is nothing to 'fix" here.

You would want to get in writing however that TDW will allow you to keep the IRA while living in Canada (many brokerages will not, again, regardless of citizenship). If not, you will need to find another brokerage that will, BEFORE you leave US.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
marie999
Posts: 16
Joined: Thu Jun 01, 2017 6:26 pm

Re: TD Waterhouse - checking citiizen instead of resident alien

Post by marie999 »

Thank you so much Nelson.
Post Reply