Negative income tax for 2009 on 1040

nelsona · Post by **nelsona** » Tue Sep 29, 2009 8:59 pm

Your RRSP limit is written on last year's assessment. NEXT year's RRSP Limit will be determined by the wages your report in 2009. Nothing you can change about this year's maximum.

Your RRSP has to stay in canada. If you want it in US, you would need to collapse RRSP>
.

Nishant · Post by **Nishant** » Fri Oct 09, 2009 9:14 pm

Hello,
Not clear how is the process of collapsing RRSP from Canada when we are now in US and no plan to return to Canada.

Can you please provide link?

nelsona · Post by **nelsona** » Sat Oct 10, 2009 9:52 am

Withdraw funds, pay 25% tax to canada. Use Cdn tax as a deduction on US return.

Nishant · Post by **Nishant** » Sat Oct 10, 2009 12:35 pm

Nelsona,
Thanks.

Does it have to be done this year only or can be done any time?

Considering first time home buyer credit plus mortgage interest makes my this years tax refund huge. Therefore I would to save the RRSP collapse to next year.

nelsona · Post by **nelsona** » Sat Oct 10, 2009 9:29 pm

I would wait until the year after your departure.

Nishant · Post by **Nishant** » Sun Oct 11, 2009 9:27 pm

What are the options available for me to invest in retirement account in US when I collapse RRSP and bring money to US after paying 25 % taxes?

I have currently 401K from employer and my income is higher than threshold for traditional IRA.

If there is no option to invest in US, would it be possible to leave the money in US and convert into annuity so that like my employer pension from Canada, I can have additional income as pension from this investment at retirement age.

Nishant · Post by **Nishant** » Sun Oct 11, 2009 9:28 pm

Error in typing. Please read as Canada instead of US in last line.

nelsona · Post by **nelsona** » Mon Oct 12, 2009 5:08 am

You could buy a annuity, but this would not be agood time to do so.

Invest it in your home, which is tax sheltered

Nishant · Post by **Nishant** » Sun Nov 01, 2009 9:35 pm

Hello Nelsona,

Two questions.

1) One on your previous post just above this. Did you mean new home? If yes, by taking another mortgage from canadian bank?

2) I checked by last year's CRA assessment for RRSP limit for 2009. Let us call it as X. My 2009 RRSP contribution during the 6 month period while my family was in Canada was less than X, say Y. Therefore I have an option of buying additional GIC before Feb 2010 for amount X-Y.

Can I then collapse all my RRSP in Mar 2010 including the newly bought GIC if I wish to move the funds to US as an alternate option?

Thanks

nelsona · Post by **nelsona** » Tue Nov 03, 2009 7:23 am

1, NO, I mean your US home.

2. Sure. make sure your GIC is not locked.