Dual citizen, Canadian resident with USA bank account

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Gilgamesh
Posts: 76
Joined: Tue Apr 02, 2019 5:30 pm

Dual citizen, Canadian resident with USA bank account

Post by Gilgamesh » Thu Apr 04, 2019 6:32 pm

Dual citizen currently working in the USA. Our bank account in Canada has less than $10k in it, so it’s not reportable in USA.

In retirement, we are planning to have a house in both countries, was wondering what are the rules in having a USA bank account as a Canadian resident.

P.S: Second question. If I don’t have a brokerage account (which I understand needs to be liquidated), but only have Roth, traditional IRA and social security, is there any problem in shifting residency status back and forth? I assume on which ever country I’ve stayed most becomes the country of residency?
One problem might be health insurance - medicare will always be there, but I don’t think I’ll have Canadian health insurance if I am not a resident right?

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

Re: Dual citizen, Canadian resident with USA bank account

Post by nelsona » Fri Apr 05, 2019 8:25 am

On FBAR, it is not the value of individual account that matters, it is the value of ALL foreign accounts taken together.

Canada has a reporting mechanism that you will have to adhere to.

You certainly can and should have a bank account in US, even if only to accept withdrawals from your pension accounts.

You need to check with your Roth and IRA management as to how they will treat you when you live in Canada.


You will ive in only one place. The other will be considered a cottage. You will need to choose one for tax and provincial health care basis.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

Gilgamesh
Posts: 76
Joined: Tue Apr 02, 2019 5:30 pm

Re: Dual citizen, Canadian resident with USA bank account

Post by Gilgamesh » Fri Apr 05, 2019 10:34 am

Thank you so much nelsona

Yes! I will definitely have all my accounts inside a friendly institution who can deal with a Canadian resident and get that in writing.

FABR for Canada looks like they also have the $10k limit, and I probably wont need that much. Because, anything my retirement accounts shoot out as dividends, capital gains or when I sell can all be inside those accounts and I can withdraw it directly from there and put it in a bank where I am considered a resident.

I was aware of the 186 day rule, but if I was in a third country vacationing for 2 months, I wont have 186 Days in either. So, do I just pick the country where I stayed the most?

Ill read up on purchasing long term health coverage in Canada when I spend a few months there but am a USA resident. This wont be a problem once I move back there as I will have Medicare - I failed to mention that I will not become a Canadian resident immediately after retirement - will be in USA for 5-10 years (will do roth conversion, utilize 0% LTCG) ) prior to the move. For the first 5-10 years, I will be a USA resident spending 3-4 months in Canada.

nelsona
Posts: 15980
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Dual citizen, Canadian resident with USA bank account

Post by nelsona » Fri Apr 05, 2019 10:57 am

Canada takes the position that if you have a residence in Canada, you are resident UNLESS you can prove you live elsewhere.

Not sure what you were looking at for RA foreign reporting, but the threshold is more like $100K.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

Gilgamesh
Posts: 76
Joined: Tue Apr 02, 2019 5:30 pm

Re: Dual citizen, Canadian resident with USA bank account

Post by Gilgamesh » Fri Apr 05, 2019 7:41 pm

Thank you...I sometimes get carried away when I start thinking of something. It’s way too early for me to be this specific...I’ll be back with these sorts of question in about 8 years.

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