RRSP withdrawal while living in US
Moderator: Mark T Serbinski CA CPA
RRSP withdrawal while living in US
If I am a green card holder and retire in the US, can I withdraw from my RRSP as if I would be in Canada? Does the withdrawal simply add to my income in the US Do I need to file a Canadian return?
As anon-resident, the process for withdrawl of RRSPs is slightly different. If you take lump-sum RRSP withdrawals, they will be taxed 25% by canada, you will also have to pay some tax to US, depending on how much of the RRSP is taxable in US.
If you take periodic withdrawals fro ma RRIF, you will only be taxed 15% by CRA, with the same tax rules applied for IRS as above. So, it would certainly be in your interst to convert your RRSP into a RRIF
Of course, you mus know what your cost basis when arriving in US was for your RRSP, and that you should have been filing Form 8891 every year and TD 90 22-1 as well.
If you take periodic withdrawals fro ma RRIF, you will only be taxed 15% by CRA, with the same tax rules applied for IRS as above. So, it would certainly be in your interst to convert your RRSP into a RRIF
Of course, you mus know what your cost basis when arriving in US was for your RRSP, and that you should have been filing Form 8891 every year and TD 90 22-1 as well.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 