Converting IRA into RRSP and increasing RRSP cap
Moderator: Mark T Serbinski CA CPA
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Converting IRA into RRSP and increasing RRSP cap
I am a USC living in Canada. If I close a US IRA and withdraw the full amount from it, I understand that I can increase my RRSP cap by the amount that I withdrew, as long as I move that withdrawal into an RRSP. How, exactly, does the RRSP cap change? Do I have to make a declaration for that to happen, or is it automatic? Thanks in advance!
Not a professional opinion.
Re: Converting IRA into RRSP and increasing RRSP cap
I would take a look at this document which outlines a few of the scenarios. As you are a US citizen, i'm not sure all would apply, but it's a good starting point. https://www.sunnet.sunlife.com/files/ad ... k_RRIF.pdf
Re: Converting IRA into RRSP and increasing RRSP cap
It is not that the cap (contribution room)changes, it is that the transfer does not affect you cap, ie. does not count against your cap.
As pl honted, this might not be a great move for USC.
As pl honted, this might not be a great move for USC.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing