Rollover RRSP to IRA/401K

mmdkpryan · Post by **mmdkpryan** » Wed Feb 27, 2008 7:48 pm

My wife and I have RRSP accounts that have performed well, but have been stagnant for the last 11 years since our return to the States. With the strengthening of the Canadian dollar, I would like to consolidate our retirement accounts. Does anyone know if it is possible to rollover the RRSP accounts into an IRA or 401K?

nelsona · Post by **nelsona** » Thu Feb 28, 2008 6:01 am

No. it is now possible, in all but 1 or 2 states, to actively trade in one's RRSP, so stagnation should not be a problem.

Your choices are to leave the money until needed or take it as income, paying any Cdn or US tax upon withdrawal.

BTW, I trust you are in compliance with IRS's reporting reuirements for RRSP (form 8891 and TD 90 forms)

mmdkpryan · Post by **mmdkpryan** » Thu Feb 28, 2008 9:13 pm

Nelsona-thanks. Do you know what states allow the rollover? I would have thought this would be a federal issue.

Yeah, we have been filing the TD 90-22.1. Trying to stay on the right side of the IRS.

nelsona · Post by **nelsona** » Fri Feb 29, 2008 6:47 am

You misunderstood my response. You CANNOT rollover, anywehere. There are a couple of states that don't even allow TRADING WITHIN your RRSP.

That is what I meant by "it is now possible, in all but 1 or 2 states, to actively trade in one's RRSP".

But have you been filing 8891.