RRSP-what to do with them while living in the US

totalnewbie · Post by **totalnewbie** » Mon Sep 28, 2009 4:31 pm

We have recently become permanent US residents. We likely won't be moving back to Canada anytime soon. I have some RRSP in Canada in GICs (term length is anywhere from 2-5 years).

After reading some of the questions in this forum, I realized that I may not be able to do anything with the GICs after they have matured because my RRSP account may be restricted to liquidating only once I tell the bank that I am a non-resident of Canada. Is that true?

If I only have GICs (no stocks), I don't want to transfer them to TD Waterhouse or some brokerage that can do cross-border. Can't I just keep them in my bank in Canada and when they mature, buy other GICs? If not, what does the government expect me to do with them after they have matured?

totalnewbie · Post by **totalnewbie** » Mon Sep 28, 2009 4:35 pm

I would also like to add that I do not want to transfer my RRSP to an IRA or anything. I do not plan on using the funds until we return to Canada at retirement. This point may simplify tax matters.

nelsona · Post by **nelsona** » Tue Sep 29, 2009 7:09 am

You *should* be able to roll these into GICs upon maturity within the existing RRSP account (I did for a couple of years after leaving Canada). You will simply have to ask your bank.

If your bank doesn't specicially allow it, there areothers that do,; you need to find one beforehand, and as the GICs mature, simply transfer them over.

bruce · Post by **bruce** » Sun Oct 04, 2009 12:53 pm

As has been discussed many times in this forum, if you're going to buy/sell stocks as a US resident you cannot do this in a taxable Cdn brokerage account. Also, if you do this in a self-directed RSP, it must be at a broker registerred in your state of residence (e.g. TD Waterhouse). But what are the rules if all you want to do is buy and roll-over GICs (and perhaps hold/sell stocks, but not buy any)?

For example, could a US resident keep open their taxable brokerage account for GICs only? How about using their RSP for GICs only while residing in a state where their broker is not registered? (In that situation, perhaps there is no reason to switch to TD Waterhouse?)

nelsona · Post by **nelsona** » Sun Oct 04, 2009 1:41 pm

The broker will not ant to do this outside of an RRSP. Regardless of what he would buy for you, he is acting as a broker, thus he can't do it.

GICs are available at banks; buy them there.