Two questions regarding RRSP while working in the US

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skyahead
Posts: 5
Joined: Thu Apr 25, 2019 12:04 am

Two questions regarding RRSP while working in the US

Post by skyahead »

Hi there,

In 2018, I had no income in Canada as I had been working in the US. I have two questions related to RRSP.

1. My bank in Canada still automatically contribute some money into my RRSP. Is RRSP that I contributed in 2018 still eligible for tax deductions?

2. Can I keep contributing to my RRSP in Canada in the following years, even if I work in the US? If so, what are the pros and cons.

Thanks
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Two questions regarding RRSP while working in the US

Post by nelsona »

First off, have you filed your departure return, since you now live in US?
Second, have you notified your bank and RRSP managers that you now live in US? When you do, they would have stopped the automatic withdrawals, and probably told you to move your accounts, since the banks don't handle US residents for RRSPs, only brokerages do.


Your RRSP contributions are eligible for deduction (assuming you have contribution room), but since you have no income to report, why deduct them. Do so when/if you return to Canada.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
skyahead
Posts: 5
Joined: Thu Apr 25, 2019 12:04 am

Re: Two questions regarding RRSP while working in the US

Post by skyahead »

Thanks Nelsona for prompt replying!!!


Since my wife and kids are still in Canada, I am still considered a resident of Canada and so I fill taxes in both the US and Canada for 2018.

I have income in the US only, is my RRSP eligible for tax deduction when I fill global income (from the US)?


I am not aware of departure return. Will check it out soon!

My bank knows I am working in the US, but did not stop the animatic withdrawals. Will check with the bank too.
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Two questions regarding RRSP while working in the US

Post by nelsona »

Then you are considered a commuter. Your wages still entitle you to build up RRSP room, unless you are contributing to a 401k or have other forms of pension in US.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
skyahead
Posts: 5
Joined: Thu Apr 25, 2019 12:04 am

Re: Two questions regarding RRSP while working in the US

Post by skyahead »

I do contribute to 401k, but not up to 401k's limit. Does this mean my RRSP still eligible for tax deductions?
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Two questions regarding RRSP while working in the US

Post by nelsona »

You have to fill in the RC268 form to find out how much you can deduct.
Please read other posts before asking questions. Please.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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