Converting IRA into RRSP and increasing RRSP cap

[CdnAmerican]

I am a USC living in Canada. If I close a US IRA and withdraw the full amount from it, I understand that I can increase my RRSP cap by the amount that I withdrew, as long as I move that withdrawal into an RRSP. How, exactly, does the RRSP cap change? Do I have to make a declaration for that to happen, or is it automatic? Thanks in advance!

[pl0910001]

I would take a look at this document which outlines a few of the scenarios. As you are a US citizen, i'm not sure all would apply, but it's a good starting point. https://www.sunnet.sunlife.com/files/ad ... k_RRIF.pdf

[nelsona]

It is not that the cap (contribution room)changes, it is that the transfer does not affect you cap, ie. does not count against your cap.

As pl honted, this might not be a great move for USC.