Converting IRA into RRSP and increasing RRSP cap

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CdnAmerican
Posts: 245
Joined: Tue Aug 30, 2011 12:15 am

Converting IRA into RRSP and increasing RRSP cap

Post by CdnAmerican »

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.
pl0910001
Posts: 23
Joined: Fri Jun 21, 2019 6:33 pm

Re: Converting IRA into RRSP and increasing RRSP cap

Post by pl0910001 »

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
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Converting IRA into RRSP and increasing RRSP cap

Post by nelsona »

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.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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