RRSP non resident withdraw
Moderator: Mark T Serbinski CA CPA
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- Posts: 42
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RRSP non resident withdraw
I got 50k CAD in my RRSP. I live in the states and want to collapse my RRSP and transfer the funds to the states. I can either pay a 25% withholding lump sum, or if I am understanding correctly, file an section 217 and pay taxes as a non-resident which would almost completely fall in the lowest 15% Canadian income tax bracket. Is this section 217 scenario correct? How would it affect my US taxes? Which method would be the best with the lowest tax liability?
Re: RRSP non resident withdraw
This is correct ONLY if you make very little income in US. 217 requires that you report WORLD income in determining the final tax rate for the RRSP withdrawal.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
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- Posts: 42
- Joined: Tue Dec 18, 2018 6:31 pm
Re: RRSP non resident withdraw
I may be able to squeeze this in on an off year, but If I am reading correctly, electing 217 would require I file a NR return with Canada for the next 5 years minimum.
Re: RRSP non resident withdraw
You would only have to file in a year (a) that you made a withdrawal and (b) determined that 217 would benefit you.
217 never requires tax filings in subsequent years, if you otherwise have no qualifying Cdn-source income.
but, yes, if you were not earning money in US, it would take 3 or 4 years to take out the RRSP tax-free in Canada, leaving you only to pay the US tax on the post-arrival growth.
217 never requires tax filings in subsequent years, if you otherwise have no qualifying Cdn-source income.
but, yes, if you were not earning money in US, it would take 3 or 4 years to take out the RRSP tax-free in Canada, leaving you only to pay the US tax on the post-arrival growth.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing