IRS Treatment of RRSP Home Buyers' Plan

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Stevecanada
Posts: 24
Joined: Sun Mar 30, 2014 4:21 pm
Location: Canada

IRS Treatment of RRSP Home Buyers' Plan

Post by Stevecanada »

Hello, my daughter is a US/Canadian dual citizen, and a resident of Canada. She and her husband are buying their first home in Canada. She has a modest amount of funds in her RRSP which she would like to use to help with the down payment. I have seen a post on this forum from about 15 years ago which stated that RRSP withdrawals for the purpose of the Home Buyers' Plan are not taxable by the IRS. Is that still the case? Thank you.
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: IRS Treatment of RRSP Home Buyers' Plan

Post by nelsona »

Correct, it is not taxable upon withdrawal for HBP purpose.
Any repayment which is NOT made, would be taxable in canada, and to some extent in US, depending on what portion of her RRSP is considered taxable (which is essentially the growth portion).
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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