RRSP return of contributions -

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Gyoung
Posts: 3
Joined: Sat Feb 13, 2021 1:57 pm

RRSP return of contributions -

Post by Gyoung »

As a naturalized American and Canadian Non Resident for the past 24 years the time has come that I need to educate myself in regards to my pension/RRSP. I read in one of the topics that the part described as "return of contribution" can be excluded from income. This may be more simple but i have no clue as to how this all comes about.

Yes I am reporting these Canadian accounts on a yearly basis.

Thank you in advance.
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: RRSP return of contributions -

Post by nelsona »

You would first need to know what your RRSP was worth when you first became a US taxpayer (presumably 24 yrs ago).
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Gyoung
Posts: 3
Joined: Sat Feb 13, 2021 1:57 pm

Re: RRSP return of contributions -

Post by Gyoung »

Actually I have that in black and white.
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: RRSP return of contributions -

Post by nelsona »

OK, so each year you withdraw income, you will include a prorated amount of the withdrawal based on value when you arrived in US vs. its value today,

Example: It was worth $1000 when you left and know it is worth $3000. You withdraw $300. $100 is not taxable, $200 is. You have now reduced the non-taxable portion to $900. you use the $900 and the new total value to come up with the taxable amount the next year you withdraw.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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