Retired, dual-citizen, qualified for both USA and Canada social security, living of savings till about ~67 to maximize soc. sec.
Maybe someone here will can enlighten me how payments from both countries will 'blended'? I understand that I will not receive the sum both.
Secondly, I'm having a hell of a time withdrawing from my Canadian RRSPs and LIRAs! Whenever I contact the Canadian financial institutions holding these accounts I get muddled responses, asking me what Province I live in!!! When I tell them I'm an American citizen and resident of the US, I can't seem to get a definitive response. I was even told once I needed to get a letter from Revenue Canada stating I was a US resident!!! Of course Revenue Canada had no clue what I meant...
WRT RRSPs and LIRAs, Will they be double taxed? Upon withdrawal by Canada, then as income by the US?
Not exactly a tax question...
Moderator: Mark T Serbinski CA CPA
Re: Not exactly a tax question...
[quote=jcyr post_id=50660 time=1545943919 user_id=9234]
Maybe someone here will can enlighten me how payments
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social security payments
Maybe someone here will can enlighten me how payments
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social security payments
Re: Not exactly a tax question...
I'll put aside the issue of "waiting" to take SS/CPP/OAS for now.
For OAS you will get XX/40ths of the monthly payment, where XX is the years you lived in Canada after age 18. This will be paid to you in USD, and taxed only in US (at 85% inclusion rate, like SS). OAS cannot be clawed back regardless of your income.
For CPP, you will get the full value you are entitled to, based on what you put in. It will of course be less than if you had worked all your time in Canada. Sent to US in USD, taxed only in US like OAS.
For SS, again, you will get a benefit based on what you paid in (assuming you worked 10 years), HOWEVER, it will be reduced by a formula called WEP, once you are collecting CPP (OAS has no effect).
Studies I've done indicate that for one living in US, it is best to take CPP as early as possible, before taking SS. That is another story.
As to your RRSP and RRIF, have you never informed them, the day you left for US, that you became a US resident? This is not something to divulge when you want to take money out, but well before this.
Taking money from LIRA before you are normally allowed to can be done by a non-resident, and, yes, it does take a letter from CRA indicating that you are non-resident, which is done by filing an NR73 with CRA. CRA telephlunkies are not the best resource.
RRSPs (or the RRIF you convert it to) and LIRA payments will be taxable 25% in Canada (15% for RRIF payments).
US taxes all LIRA withdrawals as income, It only taxes RRSP/RRIFs partially, based on the value the RRSP had when you moved to US.You would need to know its value when you moved. The Cdn tax that is withheld from your LIRA/RRSP, etc, is used as a credit on your US tax return.
For OAS you will get XX/40ths of the monthly payment, where XX is the years you lived in Canada after age 18. This will be paid to you in USD, and taxed only in US (at 85% inclusion rate, like SS). OAS cannot be clawed back regardless of your income.
For CPP, you will get the full value you are entitled to, based on what you put in. It will of course be less than if you had worked all your time in Canada. Sent to US in USD, taxed only in US like OAS.
For SS, again, you will get a benefit based on what you paid in (assuming you worked 10 years), HOWEVER, it will be reduced by a formula called WEP, once you are collecting CPP (OAS has no effect).
Studies I've done indicate that for one living in US, it is best to take CPP as early as possible, before taking SS. That is another story.
As to your RRSP and RRIF, have you never informed them, the day you left for US, that you became a US resident? This is not something to divulge when you want to take money out, but well before this.
Taking money from LIRA before you are normally allowed to can be done by a non-resident, and, yes, it does take a letter from CRA indicating that you are non-resident, which is done by filing an NR73 with CRA. CRA telephlunkies are not the best resource.
RRSPs (or the RRIF you convert it to) and LIRA payments will be taxable 25% in Canada (15% for RRIF payments).
US taxes all LIRA withdrawals as income, It only taxes RRSP/RRIFs partially, based on the value the RRSP had when you moved to US.You would need to know its value when you moved. The Cdn tax that is withheld from your LIRA/RRSP, etc, is used as a credit on your US tax return.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
Re: Not exactly a tax question...
Thanks. That helps a lot.