Where do I save money? US or Canada?

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

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Mark.w
Posts: 2
Joined: Sun Aug 28, 2011 2:36 pm

Where do I save money? US or Canada?

Post by Mark.w »

Hello,

I am a dual citizen born in the US and living in Canada.
My wife and child are also dual citizens.
I live in a boarder town and live in Canada and work in the US.

How and where do I save without being taxed double.

Do I save in my US 401k or Roth IRA?
Do I save in a Canadian RRSP or TFSA?

How do I save for my child's education in a RESP? Will she be taxed on the amount in the account?

I have a home and mortgage in Canada.
Should I just pay it off with the money I would be saving in a retirement fund?

Thanks,

Mark.
Mark.w
Posts: 2
Joined: Sun Aug 28, 2011 2:36 pm

Post by Mark.w »

I would like to keep at least half of my savings in Canada and Canadian funds but have to first figure out which ones and how to go about doing that without being taxed double.

My big problem is that I want to save for my daughters education but now I am hearing that the RESP is not the way to do it since my daughter as well as myself are both American citizens.

Mark
nelsona
Posts: 18680
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

you should not contribute to a Roth, since it will be taxable in canada. Your 401(k) contribs are tax deductible in US and canada. You rRRSP contribs would not be deductible in US.

TFSA is taxable in US.

If you to use RESP, a Cdn (non-US citizen) relative should start and fund it for you.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
eortlund
Posts: 272
Joined: Tue Aug 07, 2007 12:18 pm

Post by eortlund »

We are Americans in Canada, with no Canadian relatives. I had my brother start a 529 for my kids in the US. This seemed like the best solution--we considered my Dad, but Medicaid will raid 529 accounts and he's in his 60s.
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