What happens to our RRSPs if we move back to the US?

[hodini]

Ten years have passed. I am no longer a temporary resident in Canada. I have dual citizenship in US and Canada.

I just opened a TFSA and deposited the max--$63,500. But I just came across this posting from 10 years ago and realize that while Canada will not tax the annual earnings--the US will! And. So it appears I've not made a good choice. It appears this account will not benefit me since I will ultimately be taxed on earning is US?? Am I correct??

I was also considering setting up an RRSP in order to take advantage of deducting from Canadian taxable income. But I cannot figure out, after researching, if contribution will be deductible in the US. I think not.

Finally, while RRSP contribution may not be deductible for US purposes, it does seem the earnings from RRSP can be tax deferred if I report to the US properly.

Thus it appears there may be a benefit to me in maintaining an RRSP, but not a TFSA. While neither will allow me to make before tax contributions in both countries. It seems the RRSP will allow me to defer income until retirement.

Is my analysis correct?? Your reply greatly appreciated!!

Ten years later :-)

[hodini]

PS happy holidays!

[nelsona]

Correct. But TFSA may also require trust reporting.