I just moved to the US on an E2 visa, a little over a month ago.
Since I will be living here for the foreseeable future, I am going to cash in all my RRSPs (approximately value is C$135,000).
I will be instructing my brokerage (Royal Bank Action Direct) that I am a nonresident so that they withhold the correct amount of 25%.
But I want to make certain that RevCan will also consider me a nonresident of Canada for tax purposes before I do this. Is it sufficient that my brokerage will be deducting the 25% and submitting it to RevCan as payment to them in full for taxes owing on my RRSP, or is there some other procedure to follow or forms to fill out so that RevCan won't come back and claim that I was not really a nonresident and try to tax me at the much-higher resident rate on my collapsed RRSPs?
Also, will it cause a problem that I made an RRSP contribution a few days before leaving Canada for the US? I seem to remember something from years ago that there is a certain amount of time you have to wait after making an RRSP contribution before turning around and taking that money out (but I could well be wrong, because I'm really fuzzy on the details).
Thanks!
Cashing in RRSPs
Moderator: Mark T Serbinski CA CPA
Look over the form NR73 (do not submit) and see if you have taken care of all of the primary ties, and most of the secondary ties.
As long as 'house and spouse' are in US, you are fine.
Advise broker that you are non-res.
Your contribution is quite fine. The wating period only applies to those using the Home Buyers Plan.
Remember that you will be on the hook in US for any gains made/triggered/distributed to your RRSP for 2005 (not just after move date) if you ellect to be taxed full-year 1040, rather than dual-status.
<i>nelsona non grata... and non pro</i>
As long as 'house and spouse' are in US, you are fine.
Advise broker that you are non-res.
Your contribution is quite fine. The wating period only applies to those using the Home Buyers Plan.
Remember that you will be on the hook in US for any gains made/triggered/distributed to your RRSP for 2005 (not just after move date) if you ellect to be taxed full-year 1040, rather than dual-status.
<i>nelsona non grata... and non pro</i>
I looked it over and I'll be fine. The only ties I have left in Canada are my bank accounts and driver's licence, but that's temporary.
There won't be much tax due on the gains in the RRSP, as they were just sitting in cash and generating a miniscule amount of interest. There will maybe be $100 in interest income for 2005.
Thanks [:)]
There won't be much tax due on the gains in the RRSP, as they were just sitting in cash and generating a miniscule amount of interest. There will maybe be $100 in interest income for 2005.
Thanks [:)]