Treaty Declaratiions & RRSP Transfers

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Amberjack
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Joined: Wed Apr 14, 2010 9:19 pm
Location: Greenvillle, SC

Treaty Declaratiions & RRSP Transfers

Post by Amberjack »

Two RRSP questions:

(1) In fall 2009 I consolidated several old RRSP's into a single new account at a different Canadian institution. In 2008 I filed a non-revocable Canada-US tax treaty declaration pertaining to the collapsed accounts along with my US tax return. Are there any special requirements as a result of that? Each year (even before the declaration) I have also filed TDF90-22.1 forms.

(2) Do I need to show anything apart from the RRSP valuation at December 31 on my 1040? I have taken no distributions and no "new money" was added to the new RRSP - just the transfers.
nelsona
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Post by nelsona »

You need to file an 8891 for each RRSP account you have dureing the year.
In the year you consolidate, say, 2 into a new 1, you will submit 3 8891's. The next year you should only have to report 1.

The year you first made the election on either of the old accounts, becomes the fist year for that new account, too.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Diskdoctor
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Joined: Wed Apr 21, 2010 9:46 am
Location: Winnipeg

Post by Diskdoctor »

So, for a year in which you collapsed an RRSP and opened a new one, in the 8891 for the collapsed RRSP the full amount gets reported on line 7a as a distribution and then the taxable amount on line 7b is zero? Do you need to do anything else besides put the amount in line 16a of the 1040? Do you need to draw any lines between the old RRSP and the new one so the IRS knows what you did with the money?
nelsona
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Location: Nowhere, man

Post by nelsona »

No, you do NOT report this on line 7a (or 16a of 1040). This is not a distribution from an RRSP, it is a transfer.

Onse simply puts acct transfered to XXX on the top, and puts -0- as the year-end value.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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