US citizen with tax questions re CDN RRSP/LIRA

[egraces]

:(
Need advice!!
I became a US citzen in 2005 after having married a US citizen in 1999. In December 1999 I had left a RRSP, LIRA and some unregistered mutual funds in Canada. I cashed in the unregistered funds in 2004 to apply to a home purchase and claimed the losses within those funds on my US income tax. I claimed the tax deferral exemption for the RRSP and LIRA starting in 2002 and have sent in 8891 and TDF90.22-1 for the years starting in 2002 I didn't start this reporting until them because I was doing research on the 1st computer I purchased in 2002 and realized that not taking any money out of those investments did not mean I didn't have any reporting obligations to the IRS. I thought No withdrawls, no tax forms! If life was only so easy.
Anyway, try to make a long story short... I an now 55 and want to start taking my retirment funds. I am aware of the paperwork and application needed to unlock the LIRA but...
question #1 Am I best to transfer all the investment to the US? What are the tax implications.
question #2: Should I leave the investment in Canada? My advisor plans to transfer everything into a RIF and I only want about $500. per month or an amount that is allowed by any rules of the CRA regarding my LIRA. I have already applied to the CDN govt for proof of citizenship in order to get my LIRA unlocked....8 week minimum waiting period.
The RRSP had a present day value of about $65,000 and the LIRA, about $29,000 in Canadian funds.
My husband works for the Federal Govt and we are so intent on doing everything correctly as he is investigated every 5 years and making the IRS unhappy is not a good thing!
I have many more questions, but the above are the first ones I need answered as both my Canadian investment advisor and a book I read by Robert Keats, advise differently
Any opinions that will help me lean one way or another?

[nelsona]

Now that you are older, and have waited thsi long to collapse RRSP/LIRA, you ae probbaly best to simply take them as a pension, with canada taxing them at 15% flat rate.

To figure out your tax in US, yoe need to determine the value of your RRSP when you arrived in US. Only that ammount will eventally be taxable in US. Your LIRA is 100% taxable in US.

Theadvice to pull out everything is for younger, newer arrivals into US, and would incure 25% tax on the entire RRSP/LIRA.

[egraces]

Once my investment advisor in Canada transfers my LIRA to a RIF, will it still be fully taxable or be as the RRSP is when transferred into a RIF, at the 15% tax bracket?
PS Thanks for your answers, you have no idea how much it means to me to hear from someone and get a little advice as it's been a year that I've been messing with this stuff and trying to get answers from "professionals" in this small town. It's been an expensive dead end nightmare. You've given me some hope!

[nelsona]

Whether your LIRA is transferred t oa separate RRIF, or whether it is combined with the RRIF from your RRSP, it will be taxed at 15% if you withdraw it over time, or 25% if taken in lump sums.

And, the proceeds from the LIRA will be 100% taxable in US. The RRSP will only be partially taxable.

[egraces]

Thanks again. I may have more questions later, but this at least is giving me a starting point.
:)