Getting the money from an RRSP into a US IRA
Moderator: Mark T Serbinski CA CPA
Getting the money from an RRSP into a US IRA
My wife has a RRSP that she has been investing in for 15 years. We have been married 7 and due to my work never live in Canada. Is there a way to get the money from the RRSP out of Canada into the states with no tax hit? If not how can we minimize the hit? I just want to see if it is worth it. Has anyone done this? Or something similar? Thanks.
There is no way to transfer RRSP to an IRA.
The only way to minimize the tax hit is to take this money out slowly, as a retirement account (known as a RRIF), and pay 15% to canada, and about the same to US and state, and get credit for the Cdn tax on your 1040.
Otherwise it isa 25% tax to canada on any other type of withdrawal, and some tax to IRS and state.
I hope she has been filing all required IRS forms while living in US.
The only way to minimize the tax hit is to take this money out slowly, as a retirement account (known as a RRIF), and pay 15% to canada, and about the same to US and state, and get credit for the Cdn tax on your 1040.
Otherwise it isa 25% tax to canada on any other type of withdrawal, and some tax to IRS and state.
I hope she has been filing all required IRS forms while living in US.
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