US Citizen residing in Canada - IRA trading solution?

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

mcmoxley
Posts: 23
Joined: Sun Jun 12, 2005 12:13 pm
Location: Kimberley, BC

Post by mcmoxley »

Btw, the IRS has extended the deadline for the current OVDI program to Sept. 9, 2011 because of the likely disruptions to be caused by Hurricane Irene.
mcmoxley
Posts: 23
Joined: Sun Jun 12, 2005 12:13 pm
Location: Kimberley, BC

Post by mcmoxley »

[quote="mcmoxley"]Btw, the IRS has extended the deadline for the current OVDI program to Sept. 9, 2011 because of the likely disruptions to be caused by Hurricane Irene.[/quote]

What this forum needs is a good old-fashioned DELETE button for when the original poster puts something in the wrong thread!
jalways747
Posts: 31
Joined: Thu Feb 02, 2012 3:50 pm

vanguard account

Post by jalways747 »

mc moxley, i saw your post about your a/c being at vanguard.
pse can you high light some more info bec i am planning to move to canada and all my accounts are with vanguard. that is a problem ??
jalways747
Posts: 31
Joined: Thu Feb 02, 2012 3:50 pm

usc planning to move to canada to retire

Post by jalways747 »

mc moxley, i saw your post about your a/c being at vanguard.
pse can you high light some more info bec i am planning to move to canada and all my accounts are with vanguard. that is a problem ??
mcmoxley
Posts: 23
Joined: Sun Jun 12, 2005 12:13 pm
Location: Kimberley, BC

Post by mcmoxley »

Yes, it is a problem. Vanguard does not allow account-holders who have a Canadian address to add new funds, buy new investments, or switch between investments (which is a sell/buy). Once Vanguard knows you are a Canadian resident, you will only be able to sell your holdings or reinvest dividends/cap gains back into the same holding.

I would recommend switching your accounts to Fidelity before you move. I'm assuming you are in the US. You can open Fidelity accounts, transfer your assets from Vanguard, and then you'll be able to still make trades and add new funds to your Fidelity accounts after the move to Canada.
jalways747
Posts: 31
Joined: Thu Feb 02, 2012 3:50 pm

fidelity

Post by jalways747 »

mcmoxley, appreciate your insight, yes i am still in us, how about non retirement account, should i move to fidelity too, any restrictions on operating those from canada ?

the problem with moving is i have to sell the existing vanguard funds and the buy fidelity ?
looks like best is to transfer all accounts ira and non ira to fidelity

would you have any issue with communicating with me by email ?
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Your non IRA would need to be sold, regardless of who holds it. Only retiremnent accounts can be operated cross-border (with permission for the broker).

Non-retirements cannot.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
mcmoxley
Posts: 23
Joined: Sun Jun 12, 2005 12:13 pm
Location: Kimberley, BC

Post by mcmoxley »

As nelsona said, Fidelity is OK with allowing you to transact in retirement accounts from Canada...retirement accounts meaning traditional IRA and/or Roth IRA.

No need to sell Vanguard funds to buy Fidelity when you make the switch. Just make sure you ask Fidelity to perform a "custodian to custodian transfer" of your Vanguard funds. You can certainly hold Vanguard mutual funds in a Fidelity account. I have several Vanguard funds myself in my Fidelity IRA...funds that are good solid funds for which there is no better alternative.
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

mcmoxley is correct on this. Obviously Fidelity does not promote this option, but there in no reason to think that it is in anywy forbidden.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
jalways747
Posts: 31
Joined: Thu Feb 02, 2012 3:50 pm

Post by jalways747 »

thank you mcmoxley and nelsona.great i can transfer all my funds/stocks etc to fidelity. any more info and any tax tips etc is highly appreciated
learnt a ton from this forum
jalways747
Posts: 31
Joined: Thu Feb 02, 2012 3:50 pm

Post by jalways747 »

according to fidelity, they have no issues with you having a non retirement a/c residing in canada the same trading restriction apply as a ira account .
mcmoxley do you have a non retirement a/c at fidelity ?
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Fidelity might not, but the Cdn security exchanges do.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
patti
Posts: 66
Joined: Sun Apr 24, 2011 7:28 pm

Post by patti »

As long as you are not buying Cdn securities in your US non-ret acct, why is that any of the business of the Cdn exchanges?
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

I guess I meant to say securites commisions (for each province) not the exchanges.

Because you are using the services of a broker who is not licensed to deal for you in your province. It has nothing to do with WHAT you buy/sell, but rather WHOM you are dealing with.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
mcmoxley
Posts: 23
Joined: Sun Jun 12, 2005 12:13 pm
Location: Kimberley, BC

Post by mcmoxley »

Yes, I do have a non-retirement account at Fidelity but I don't use it to trade any stocks, bonds, or mutual funds. The account has only a cash reserves position that holds my US$ "emergency" funds.
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