Is a RRSP a Foreign Trust / requiring the filing of a 3520

icbusiness · Post by **icbusiness** » Tue Oct 12, 2010 5:22 pm

thanks for your help

One MUST files 8891 for RRSPs

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IRS - Is a RRSP a Foreign Trust / requiring the filing of a 3520 every year?

icbusiness · Post by **icbusiness** » Tue Oct 12, 2010 5:34 pm

And.sorry.....If you move a RRSP through direct transfer to another institution (Great West *GW) RSP to TD Waterhouse RSP account,
*What is the required reporting is any.....3520....
and the 8891 which I think will be as follows
i.e.
2009 = 8891 for GW goes from starting balance of $43K to Zero (June 09) through Direct Transfer to TD self directed account which start at $43K (June 09) and closes the year at $39K due to stock loses.

*Does the RRSP transfer require any special reporting?

nelsona · Post by **nelsona** » Wed Oct 13, 2010 9:38 am

RRSPs are considered foreign trusts under the rules for 3520. However filing 8891 is acceptable in place of 3520.

You need to file an 8891 for ANY RRSP you held during the year. So in a year of transfer or collpe you report an 8891, with year-end zero balance for the ones that were closed.

As you know, your US tax exposure on RRSPs is based SOLEY on your original contributions, so all the values you are talking about mean nothing. Your RRSP has a contributed amount and (when you sell) proceeds. The difference is what you will be taxed on by IRS.