RRSP Questions

ruib77 · Post by **ruib77** » Tue Jul 24, 2012 10:13 am

I have 2 questions about RRSP.

1. My wife and I took $25k each out of our RRSP as first time home buyers. We are supposed to pay this money back in 15 years starting from this year. Now if I sell the house and become a cdn non-resident, what are the options for me? Can I still pay it in 15 years? What will be the tax rate if I don't wanna pay it back?

2. Other than this $25k each, we also have a few more grands invested in RRSP. Can we take that money out when we become cdn non-resident? what will be the tax rate for that?

nelsona · Post by **nelsona** » Tue Jul 24, 2012 1:19 pm

1. When you become non-resident, you must pay the remaining HBP money back into your RRSP within 60 days of departure, or it is added to your departure return as income, and taxed accordingly.

2. The taxrate on any withdrawal after departure will be 25% flat tax.

ilovemywife · Post by **ilovemywife** » Mon Aug 13, 2012 3:37 pm

i have a quick question for anyone who can help. i have what is known as a REGULAR rrsp account as opposed to a SPOUSAL rrsp account. which is in my name only. i am the annuitor and the contributor. i am a canadian citizen and my wife is an american citizen and permanent resident of canada. she lives here with me. she is listed as the beneficiary of this account. i have been told that she does not have to file an fbar report for this account because she can neither contribute to the account or control the funds in the account. i just want to verify is this is true or not. pleaseee tell me that it is true, otherwise i probably wont sleep at night as this would mean that she will have to file late fbars for this account over the last 3 years. but please tell me the truth either way. please either email me at timothy431967@yahoo.com or reply to this post.

thanks
tim

nelsona · Post by **nelsona** » Mon Aug 13, 2012 4:14 pm

She absolutely DOES contro;l the account. Once you contribute, you no longer have control of the spousal account.
So she MUST FBAR and 8891.
the re will be no penalty: its an RRSP. Use 8891 and fix this.

ilovemywife · Post by **ilovemywife** » Mon Aug 13, 2012 4:22 pm

ok nelson i am a bit confused here....you replied to an earlier post that if a person cannot touch or fund an account then no fbar report would be required. and this is the case. this is not a spousal rrsp account. it is what i have been told is a regular rrsp account. i am the annuitor and contributor for this account.it has my social insurance number on there for both of those distinctions. so please reply back to me again. im not sure if u thought this was a spousal account or not. it is NOT a spousal account.

sincerely
tim

ilovemywife · Post by **ilovemywife** » Mon Aug 13, 2012 4:40 pm

nelson would u be willing to let me call you? i have long distance and i could call you on my dime. or i would be willing to give you my number as well. i can be reached at 720 949 6330. i think it would be better to talk over the phone, that way things stay fresh in my mind. if you dont want to talk on the phone i am happy to correspond on here as well.

sincerely
tim

nelsona · Post by **nelsona** » Mon Aug 13, 2012 5:01 pm

Ah, I see. This is your RRSP. So, unless you report jointly with her on her 1040, there is nothing for you to report, and this account has nothing to do with you.

ilovemywife · Post by **ilovemywife** » Mon Aug 13, 2012 5:14 pm

hi nelson,

you meant that there is nothing for HER to report right and that the account has nothing to do with HER correct? she is the US citizen not me. i am the canadian lol! and i am the annuitor and contributor of the account it is not a spousal account...it is a regular rrsp account. she is simply listed as the beneficiary of the account in the event of my death it would then become hers. and yes she files married but SEPARATELY on her US tax return.

sincerely
tim

nelsona · Post by **nelsona** » Mon Aug 13, 2012 5:53 pm

Geez, it's YOUR account. She has notrhing to do with it.

ilovemywife · Post by **ilovemywife** » Wed Aug 15, 2012 1:58 pm

ok i have a question for anybody who would like to reply....can someone please tell me what this means in english? "During 2011, did you receive a distribution from, or were you the grantor of, or transferor to, a
foreign trust?" this is question 8 on schedule b of my wifes US tax return. i just want to know if the answer to this question would be yes or no for my wife. she is the beneficiary of my RRSP account...the rrsp account is NOT a spousal account...it is only in my name...it is an individual RRSP account..i am the annuitor and contributor to the account. she has no authority to control money in the account or to add money to the account. she would inherit the account in the event of my death and then she would become the owner of it and then and only then would she have the authority to control the account or add money to it.anybody who can answer these questions for me please do. it would be greatly appreciated.

sincerely,
tim

ilovemywife · Post by **ilovemywife** » Wed Aug 15, 2012 2:07 pm

ok i have a question for anybody who would like to reply....can someone please tell me what this means in english? "During 2011, did you receive a distribution from, or were you the grantor of, or transferor to, a
foreign trust?" this is question 8 on schedule b of my wifes US tax return. i just want to know if the answer to this question would be yes or no for my wife. she is the beneficiary of my RRSP account...the rrsp account is NOT a spousal account...it is only in my name...it is an individual RRSP account..i am the annuitor and contributor to the account. she has no authority to control money in the account or to add money to the account. she would inherit the account in the event of my death and then she would become the owner of it and then and only then would she have the authority to control the account or add money to it.anybody who can answer these questions for me please do. it would be greatly appreciated. Oh i almost forgot to mention...my wife is an american citizen and a permanent resident of canada.....and i am a canadian citizen only. she lives here with me.

sincerely,
tim

ilovemywife · Post by **ilovemywife** » Wed Aug 15, 2012 2:40 pm

i have another question for the room.....i have life insurance through my work. its basically term insurance with no surrender cash value. if i put my wife on this insurance as a beneficiary,(she is american and i am canadian and she lives with me in canada), would she be required to report this to the irs on an fbar or any other form? i am thinking the answer is no, but if anyone can enlighten me on this then please reply back to me.

sincerely
tim

nelsona · Post by **nelsona** » Wed Aug 15, 2012 3:08 pm

YOU would answer this question YES, not her. If YOU are not filing jointly with her, then she answers NO to this question.

If you die, she will have to answer YES for that year and all subsequent years until the RRSP is collapsed.

The insurance is NOT an account, and is not in her name.
So nothing to report until you die.

ilovemywife · Post by **ilovemywife** » Wed Aug 15, 2012 3:18 pm

you said i would have to answer yes to this question...why would that be?...i am not american nelson i am canadian.my wife is the american citizen as well as a canadian permanent resident. i would not be required to answer that question at all becasue i am canadian correct? and she would not have to answer yes either correct?

sincerely
tim

nelsona · Post by **nelsona** » Wed Aug 15, 2012 3:21 pm

Geez. I answered your question:
"If YOU are not filing jointly with her, then she answers NO to this question."

The response from you should be "thanks"