RRSP and bank accounts reporting requirement in the U.S. return

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

Post Reply
okinawafl
Posts: 97
Joined: Sun Jul 11, 2021 12:38 pm

RRSP and bank accounts reporting requirement in the U.S. return

Post by okinawafl »

I just notice that I have a Canada bank account with highest balance of over 50k in 2021 and I also have RRSP around 26k. Do I still only need to report on FBAR or there is other reporting requirements for federal ?

Thanks.
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: RRSP and bank accounts reporting requirement in the U.S. return

Post by nelsona »

just fbar.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
okinawafl
Posts: 97
Joined: Sun Jul 11, 2021 12:38 pm

Re: RRSP and bank accounts reporting requirement in the U.S. return

Post by okinawafl »

Thanks nelsona.
I have around 8k 401k contribution this year. As a emigrant from Sept this year, can I still contribute to RRSP for my 26k 2021 available contribution room before March next year? So I can use it to deduct my 2021 Canada self employed income earned before I left Canada, and leave the unsued RRSP contribution in my CRA account for future years to deduct when need?
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: RRSP and bank accounts reporting requirement in the U.S. return

Post by nelsona »

You can, but if (a) your RRSP firm allows US customers (most do not) and (b) allows you to make contributions as a US resident (even fewer). You would have checked this out before leaving. Do NOT fake a CDn address.

In general though, there is little value in making an RRSP contribution if your Cdn taxable income is low, as you will no doubt pay more tax taking it out later than you save now. And having unused contributions aren't much use either. Focus on your Roth and house in US. These will grow taxfree.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
okinawafl
Posts: 97
Joined: Sun Jul 11, 2021 12:38 pm

Re: RRSP and bank accounts reporting requirement in the U.S. return

Post by okinawafl »

Thanks nelsona mentioned the cad address. I total miss it, can I keep the mailing address of my banking documents in Canada so my parent can receive any mail for me just in case? To be accepted by CRA as an Emigrant from Canada, do I have to request the bank to mark Non-resident in my RRSP accounts, checking account(no interest income) and credit card account?

I am also worry if the bank can't put the effective date in Sept 2021 (when I left Canada), will CRA consider me has sufficient residential with canada this year?

your advice would be appreciated.
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: RRSP and bank accounts reporting requirement in the U.S. return

Post by nelsona »

You will still be non-resident regardless of what accounts you keep. However, US securities laws forbid Cdn firms to deal with US residents unless they are licensed in the US. Faking an address puts both you and firm in jeopardy. Best to find a CDn broker that will deal with you legally asap.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
okinawafl
Posts: 97
Joined: Sun Jul 11, 2021 12:38 pm

Re: RRSP and bank accounts reporting requirement in the U.S. return

Post by okinawafl »

Thanks nelsona. I will check with the bank tomorrow asap.

Happy New Year....
Post Reply