begin date of RRSP when resident

[canroc]

Hi,

I collapsed my RRSP in 2007 so will need to report earnings in my U.S. tax return.

I worked in the U.S. on a TN Visa from 1993 until 1998. In 1998 I obtained my green card. I have worked continuoulsy in the U.S. from 1993.

Do I calculate the beginning value of my RRSP from 1993 or from 1998?

Thanks in Advance.

[nelsona]

Have you been filing all the required paperwork over the years Rev procs 89-45, Rev Proc 2002-23, Form 8891?

You need to be current on these (last 6 years) to avoid any nasty surprises.

To answer your Q though, you need to determine the book value on the day you became a US taxpayer, filing a 1040, so that would be sometime in 1993. Add to that any RRsp contributions you made since 1993, and subtract any amounts that you reported to IRS as taxable income over the years.

This will be the portion of your RRSP taht is not taxable in US.

[nelsona]

... I guess you were able to unlock your LIRA

[canroc]

Thank you for the information.

I had a federal RRSP and was able to unlock it and cash it in, though it took some time to convince the Royal Bank where I had my RRSP that it was possible. I had to show them the government ruling on this. They were not aware of the new ruling, which I think went into effect in September 2006. They thanked me for the information and updated their notes on procedure at the main office.

BTW, I submitted 8891 forms for 2004-2006, and Procedure 2002-23 for 2001-2003. Oddly the IRS replied with a letter requesting that I submit an 8891 for 2001-2003, which I promptly did. This satisfied them.

[nelsona]

That is intersting, since the forms have no basis for being used in those previous years.

The reason *might* be that they read the 8891's you sent first, on which yoy noted that you were claiming 02-23 election from 2001, before looking at the actual 02-23 statements you sent in, and got confused

You knows.