Hi
I move to USA on TN visa in 2005 by NAFTA. By this time I had RRSP account (5k ) in Canadian bank. The account still open since I'm frequently going to Canada to visit my children. Now I'm married to US citizen (2012), holding GC and applying for US citizenship now. I'm getting 65 in 2022 and planning to retired. What it could be the best strategy for the money in RRSP account( it's 7K now)? Since 2005 I fill up only US TAX forms and never reported this money.
RRSP account withdraw
Moderator: Mark T Serbinski CA CPA
Re: RRSP account withdraw
likely to convert to rrif and withdraw at much lower rate than 25%
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- Posts: 2
- Joined: Mon Nov 01, 2021 11:13 am
Re: RRSP account withdraw
I red that RRIF has the same withholding tax rates as an RRSP on withdrawals. For non-residents, withholding rates are 25% for lump-sums, and 15% for periodic pension payments. Is it not true?
Re: RRSP account withdraw
No. RRSPs cannot have the lower rate applied, regardless of the nature of the withdrawals. This changed in the 90's.
If you convert to a RRIF, and you withdraw only 10% or less a year, you will get the 15% withholding. The firm holding your RRSP/RRIF must be advised that you live in US (which you would have told them in 2005)
For US tax, you are taxable on the growth since you moved to US.
If you convert to a RRIF, and you withdraw only 10% or less a year, you will get the 15% withholding. The firm holding your RRSP/RRIF must be advised that you live in US (which you would have told them in 2005)
For US tax, you are taxable on the growth since you moved to US.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing