RRSP withdrawals from US
Moderator: Mark T Serbinski CA CPA
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RRSP withdrawals from US
After moving to the US from Canada, would you advise collapsing a sizeable RRSP by periodic or lump sum withdrawals? Would this depend on the age of the RRSP holder? I have recently heard a suggestion that taking a series of lump sum withdrawals rather than one big withdrawal as there is a better possibility of either deducting the withholding tax or using it as a foreign tax credit.
Depends on your age. the real savings would be first converting to RRIF, regardless of age. then at least 10% a year would only be taxed 15% instead of 25% by CRA. That is where your major tax savings will be.
Otherwise take it all.
Often discussed, happy browsing.
Otherwise take it all.
Often discussed, happy browsing.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Convert to RRIF and take 10% a year, maybe waiting 5 years beforedoing it, so that you have some US taxable portion.
Otherwise, if you really need the money and are sure that you won't return to canada sooer rather than later, take it all one one lumpsum in the fiorst year, little US tax, and use the Cdn tax as a deduction. If you ahve more than $200K then do it vr 2-3 years.
Otherwise, if you really need the money and are sure that you won't return to canada sooer rather than later, take it all one one lumpsum in the fiorst year, little US tax, and use the Cdn tax as a deduction. If you ahve more than $200K then do it vr 2-3 years.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing