Transferring / merging RRSPs, how to declare to the US?

Princess Claire · Post by **Princess Claire** » Mon Mar 30, 2015 7:15 pm

Hi! I'm a Canadian living in the US. I had many RRSPs in Canada and decided last year to merge them all together into an existing account, and also changed the fund at the same time.

How would I declare that? On which forms?

Example before:
Bank A - Account 0001 - Fund X - 10,000$
Bank B - Account 0002 - Fund Y - 10,000$
Bank C - Account 0003 - Fund Z - 10,000$

After:
Bank C - Account 0003 - Fund W - 30,000$

I'm thinking of filing both Form 8938 and FinCen Form 114, but I am not sure how to declare the transfer. Because if I put the date at which I got rid of the previous funds, I don't want them to think I cashed them out without declaring it as income.

Thanks for the help! :)

nelsona · Post by **nelsona** » Mon Mar 30, 2015 10:22 pm

you basically report all the accounts you had, their max values and their year-end values.

rlb · Post by **rlb** » Tue Mar 31, 2015 11:32 am

On form 8938, you also will check that accounts 0001 and 0002 were closed during the tax year.

Princess Claire · Post by **Princess Claire** » Tue Mar 31, 2015 4:24 pm

Oh I see, you would put RRSP accounts in Part V. That would make more sense.
I was going to put them in Part VI and got confused.

So, for an RRSP, we fill only Part I and Part V.
For a savings or checking account, we would fill Part I, Part III and Part V.

Is that correct?
Or would we also have to fill Part III for the RRSPs, even though they aren't taxed?

I really wish we could find examples of a filled Form 8938 for these common scenarios. Would be tremendously helpful in complementing the instructions.

nelsona · Post by **nelsona** » Tue Mar 31, 2015 4:31 pm

RRSPs are specifically mentionned in the instructions and must go in Part VI. What in our responses made you think they would go in Part V?

Princess Claire · Post by **Princess Claire** » Tue Mar 31, 2015 5:09 pm

The wording "account closed" as opposed to "asset disposed". There's no checkbox mentioning an account closed in Part VI.

Part V line 3b "Account closed during tax year"
Part VI line 3b "Date asset disposed of during tax year, if applicable"

But I see the instruction you're talking about now (in "What's new"):
http://www.irs.gov/instructions/i8938/ch01.html

So using Part VI it is, but that brings me back to my original question. How to report the transfer?
Should I specify a date on line 3b for accounts 0001 and 0002? Probably.
But what about 0003 that received the money? Should I specify the date the new money got in on line 3a? Or leave blank because I always had that account?

nelsona · Post by **nelsona** » Tue Mar 31, 2015 5:14 pm

RRSPs are considered an "asset" which can be treated as one entity. No need to list each investment.

There is no need to report the transfer. You had three accounts in the year. You disposed on 2 of them, and the third has a maximum value. it doesn't matter what date it was funded, by how much or if some was removed.

Princess Claire · Post by **Princess Claire** » Tue Mar 31, 2015 7:00 pm

Oh, the account itself is the asset. I see it now :idea:
Thanks for the clarification!