RRSP non resident withdraw

[taxquestions]

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?

[nelsona]

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.

[taxquestions]

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.

[nelsona]

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.