What happens to our RRSPs if we move back to the US?
Moderator: Mark T Serbinski CA CPA
What happens to our RRSPs if we move back to the US?
OK, as I said, I need to focus on retirement planning. My husband has an RRSP and hopefully I'll get a spousal RRSP soon (when I am eligible for an SIN). I'm really hoping to step up our contributions. Because we were not eligible for the Child Tax Benefit and UCC for 18 months after our arrival, our budget does not depend on that money, and my thinking is that we will redirect it all into the RRSPs.
Now, if we return to the US in 5 years, 10 years, 20 years, what are the options for the RRSP? Can we just leave it growing in Canada and then draw from it at retirement (I know it has to be converted to an RRIF). Our Roth IRAs are sitting in the US in that way. Or will we be forced to collapse the RRSP when we leave and take a tax hit.
We are behind in our retirement planning and I want to do the right thing to maximize growth and minimize tax.
Now, if we return to the US in 5 years, 10 years, 20 years, what are the options for the RRSP? Can we just leave it growing in Canada and then draw from it at retirement (I know it has to be converted to an RRIF). Our Roth IRAs are sitting in the US in that way. Or will we be forced to collapse the RRSP when we leave and take a tax hit.
We are behind in our retirement planning and I want to do the right thing to maximize growth and minimize tax.
Your RRSPs will continue to be sheltered when you move to US. Given your US citizenship, you need to make sure your RRSP is sheltered regardless of whwere you live, by filing Form 8891.
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no problem.
based on what you have said,m you should probabaly be focussing on your RRSP and paying down your home.
A TFSA might seem attractive (and is being hyped to the max right now), but the growth is taxable in US, so be careful. RRSP and house first.
based on what you have said,m you should probabaly be focussing on your RRSP and paying down your home.
A TFSA might seem attractive (and is being hyped to the max right now), but the growth is taxable in US, so be careful. RRSP and house first.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
then under this scenario there would be absolutely no advantage at all in a TFSA, Agree?
"just like an RESP." That's interesting. I was trying to get into an RESP, but because of my current temporary immigration status--my kids couldn't get SIN's and therefore I am unable to contribute for the time being.
RSSP gains are not taxed in the U.S. year-to-year when a U.S. citizen is residing in Canada. Only on withdrawl? Right?
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"just like an RESP." That's interesting. I was trying to get into an RESP, but because of my current temporary immigration status--my kids couldn't get SIN's and therefore I am unable to contribute for the time being.
RSSP gains are not taxed in the U.S. year-to-year when a U.S. citizen is residing in Canada. Only on withdrawl? Right?
This forum is terrific and your firm does a great job. I am a client.
I don't work for serbinski, and his contributions to this site are minimal at best.
RRSps are only taxed on withdrawal IF you elect by form 8891 to do so. Only the growth is taxed.
AS a temp resident it is pointless to get RESP or TFSA.
RRSps are only taxed on withdrawal IF you elect by form 8891 to do so. Only the growth is taxed.
AS a temp resident it is pointless to get RESP or TFSA.
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If you do NOT elect to defer taxation, you pay yearly.
If you DO elect, you then defer taxation until you take withdrawals.
Canada does not require any extra paperwork. Your yearly income is not taxable. You only incude withdrawal as income.
If you DO elect, you then defer taxation until you take withdrawals.
Canada does not require any extra paperwork. Your yearly income is not taxable. You only incude withdrawal as income.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing