US resident/Cdn. LRIF and RIF withdrawals

artistic95 · Post by **artistic95** » Wed Jan 08, 2014 9:50 pm

I am a dual US/CDN citizen permanently living in the US and making my minimum required withdrawals from my RIF and LRIF on a monthly basis in Canadian funds.
Both the RIF and LRIF accounts are being managed in Canada and are invested in both US and Canadian securiies, bonds, etc. .
The problem is both accounts only have a Canadian CASH account and the distribute monthly to me in Canadian Funds to my Canadian RBC Bank account.
I then have to convert back to US funds in my RBC US bank accounts.
As a result, I am getting hit on exchange fees twice, once when the Management converts US transactions to CDN dollars since they only have CDN Cash accounts and distribute CDN funds to me and then again when I convert back to US funds monthly to live in the US>
Can US fund Cash accounts be held in RIFS and LRIFs and can distributiuons be made in US funds??
Thank you

nelsona · Post by **nelsona** » Thu Jan 09, 2014 2:07 am

This would be a question for your brokerage. US funds certainly can be held in your account, but whether they would be able to make the payout in US funds is doubtful. Likley they would convert the US funds into Cdn at withdrawal time.

As to US taxation of your withdrawals, remember that your RIF has some non-taxable portion, based on its book value when you arrived in US, but your LRIF withdrawal is fully taxable.

artistic95 · Post by **artistic95** » Thu Jan 09, 2014 8:43 pm

Thank you