Hi,
I'm a Canadian citizen movig to US in 2016. I have 70K and wife has 50K (SPOUSAL) in RRSP. I am right now working in Michigan and since my wife still lives in Canada, I'm still Canadian resident as CRA confirmed me when I called them today. My wife has 0 income this year ad so thinking to withdraw 30K from RRSP this year and report to CRA Tax return as resident and as per my calculation her tax will be about 14% on this withdrawal.
Reading this forum I also see if she withdraw next year, when we become non resident, we can take 217 route and every year withdraw the amount equal to her personal amount to minimize the tax, Am I correct ? She doesn't work in US. Of-course she will report this as income in US return. What is most beneficial i.e withdrawing 30K or amount equal to personal amount every year when we move to US and become non resident ?
Your suggestions are welcome as I have to make decision by tomorrow before 2015 withdrawal deadline.
Thanks in advance and have a happy holidays and new year.
RD
Canadian citizen movig to US in 2016. Withdraw RRSP now ?
Moderator: Mark T Serbinski CA CPA
First of all, just because your wife is still in Canada does NOT necessarily make you resident of Canada (CRA will ALWAYS say this, but they are not necessarily looking at treaty or your particular circumstances. For example if you have stayed in US since you went to work, not visiting Canada, and she visited you, you could claim, by treaty that you were US resident.
But, putting that aside, if you take your RRSP out this year, as a cdn tax resident, it will be added to your world income for the year, and your tax rate will be very high on this income, instead of flat 25% if you take it out after you leave Canada. So you would definitely wait.
For your spouse, since she has no income, she could withdraw some now, but this would impact your taxes, since you would lose her credit, so be careful.
And remember that spousal RRSP taken out be a Cdn resident is taxed in the hands of the person funding the account (which would be you). There is no such restriction when non-resident.
I have written much on US taxation of RRSP, but realize that only growth after moving to US would be taxable in US, so it is beneficial to lower the Cdn tax as much as possible. She could use 217 to reduce the tax far below 25% and pay very little in US tax.
So, I would be waiting for 2016, when you are both clearly US residents, to remove her RRSP 15-20K per year at little or no Cdn or US tax, for the next 3 years. She is entitled to more than her personal amount on 217, she can include all medical expenses you both pay as well, for example.
You might decide simply to take all of your RRSP at 25% and be done with it.
But, putting that aside, if you take your RRSP out this year, as a cdn tax resident, it will be added to your world income for the year, and your tax rate will be very high on this income, instead of flat 25% if you take it out after you leave Canada. So you would definitely wait.
For your spouse, since she has no income, she could withdraw some now, but this would impact your taxes, since you would lose her credit, so be careful.
And remember that spousal RRSP taken out be a Cdn resident is taxed in the hands of the person funding the account (which would be you). There is no such restriction when non-resident.
I have written much on US taxation of RRSP, but realize that only growth after moving to US would be taxable in US, so it is beneficial to lower the Cdn tax as much as possible. She could use 217 to reduce the tax far below 25% and pay very little in US tax.
So, I would be waiting for 2016, when you are both clearly US residents, to remove her RRSP 15-20K per year at little or no Cdn or US tax, for the next 3 years. She is entitled to more than her personal amount on 217, she can include all medical expenses you both pay as well, for example.
You might decide simply to take all of your RRSP at 25% and be done with it.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
and remember to TELL your RRSP manager when you become US residents -- and also make sure that your RRSP firm is allowed to deal with you in US (the bank RRSPs are not, the self directed ones area).
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
[quote="nelsona"]First of all, just because your wife is still in Canada does NOT necessarily make you resident of Canada (CRA will ALWAYS say this, but they are not necessarily looking at treaty or your particular circumstances. For example if you have stayed in US since you went to work, not visiting Canada, and she visited you, you could claim, by treaty that you were US resident.
But, putting that aside, if you take your RRSP out this year, as a cdn tax resident, it will be added to your world income for the year, and your tax rate will be very high on this income, instead of flat 25% if you take it out after you leave Canada. So you would definitely wait.
For your spouse, since she has no income, she could withdraw some now, but this would impact your taxes, since you would lose her credit, so be careful.
[color=red]
<Raju> I calculated and found if my wife withdraws 30K RRSP this year our (my + wife's) total tax increases by $5958. If she withdraws as no resident 20% of 30K come to be $7500. So withdrawing now saves about 1.5K. I don;t know what will be US tax implication to this.>[/color]
And remember that spousal RRSP taken out be a Cdn resident is taxed in the hands of the person funding the account (which would be you). There is no such restriction when non-resident.
[color=red]<Raju> I haven't contributed her RRSP for more than 3 years. So 3 years attrition rule doesn't apply and all withdrawal is her income>
[/color]
I have written much on US taxation of RRSP, but realize that only growth after moving to US would be taxable in US, so it is beneficial to lower the Cdn tax as much as possible. She could use 217 to reduce the tax far below 25% and pay very little in US tax.
[color=red]<Raju> After I become US resident in 2016, Can I also use 217 while withdrawing from Canadian RRSP ? If yes how much each year? I will have some 2K GIC interest in Canada in 2016 and rest all income from US employment. So if tax is minimal, I would like to withdraw RRSPs and take the 217 route to lower tax.>[/color]
So, I would be waiting for 2016, when you are both clearly US residents, to remove her RRSP 15-20K per year at little or no Cdn or US tax, for the next 3 years. She is entitled to more than her personal amount on 217, she can include all medical expenses you both pay as well, for example.
[color=red]<Raju> Is there a rule that 217 can be used for only first 3 years after become non resident ? If yes can it be extended ? What is tax % if withdrawn above personal amount?
Regarding medical, I will have only US medical expenses. Can I claim US medical expenses in 217?
[/color]
You might decide simply to take all of your RRSP at 25% and be done with it.
[color=red]<Raju> We have RRSPs in Sunlife financial, which was funded by my employer, however I can withdraw now. They send me a letter at home and said if I'm a non resident, I must sign a new contract in CANADA or appoint a power of attorney resident in Canada to do on my behalf.
I will definitely use 217. Please advice how should I prceed. >[/color]
[/quote]
Hi Nelsona,
Thanks a lot for quick and prompt reply. I have added my inline comments in [color=red]red[/color] above against your recommendations. Looking forward for your valued recommendation to my questions.
Regards'
Raju
But, putting that aside, if you take your RRSP out this year, as a cdn tax resident, it will be added to your world income for the year, and your tax rate will be very high on this income, instead of flat 25% if you take it out after you leave Canada. So you would definitely wait.
For your spouse, since she has no income, she could withdraw some now, but this would impact your taxes, since you would lose her credit, so be careful.
[color=red]
<Raju> I calculated and found if my wife withdraws 30K RRSP this year our (my + wife's) total tax increases by $5958. If she withdraws as no resident 20% of 30K come to be $7500. So withdrawing now saves about 1.5K. I don;t know what will be US tax implication to this.>[/color]
And remember that spousal RRSP taken out be a Cdn resident is taxed in the hands of the person funding the account (which would be you). There is no such restriction when non-resident.
[color=red]<Raju> I haven't contributed her RRSP for more than 3 years. So 3 years attrition rule doesn't apply and all withdrawal is her income>
[/color]
I have written much on US taxation of RRSP, but realize that only growth after moving to US would be taxable in US, so it is beneficial to lower the Cdn tax as much as possible. She could use 217 to reduce the tax far below 25% and pay very little in US tax.
[color=red]<Raju> After I become US resident in 2016, Can I also use 217 while withdrawing from Canadian RRSP ? If yes how much each year? I will have some 2K GIC interest in Canada in 2016 and rest all income from US employment. So if tax is minimal, I would like to withdraw RRSPs and take the 217 route to lower tax.>[/color]
So, I would be waiting for 2016, when you are both clearly US residents, to remove her RRSP 15-20K per year at little or no Cdn or US tax, for the next 3 years. She is entitled to more than her personal amount on 217, she can include all medical expenses you both pay as well, for example.
[color=red]<Raju> Is there a rule that 217 can be used for only first 3 years after become non resident ? If yes can it be extended ? What is tax % if withdrawn above personal amount?
Regarding medical, I will have only US medical expenses. Can I claim US medical expenses in 217?
[/color]
You might decide simply to take all of your RRSP at 25% and be done with it.
[color=red]<Raju> We have RRSPs in Sunlife financial, which was funded by my employer, however I can withdraw now. They send me a letter at home and said if I'm a non resident, I must sign a new contract in CANADA or appoint a power of attorney resident in Canada to do on my behalf.
I will definitely use 217. Please advice how should I prceed. >[/color]
[/quote]
Hi Nelsona,
Thanks a lot for quick and prompt reply. I have added my inline comments in [color=red]red[/color] above against your recommendations. Looking forward for your valued recommendation to my questions.
Regards'
Raju
[quote="RAJUMONI"][quote="nelsona"]First of all, just because your wife is still in Canada does NOT necessarily make you resident of Canada (CRA will ALWAYS say this, but they are not necessarily looking at treaty or your particular circumstances. For example if you have stayed in US since you went to work, not visiting Canada, and she visited you, you could claim, by treaty that you were US resident.
But, putting that aside, if you take your RRSP out this year, as a cdn tax resident, it will be added to your world income for the year, and your tax rate will be very high on this income, instead of flat 25% if you take it out after you leave Canada. So you would definitely wait.
For your spouse, since she has no income, she could withdraw some now, but this would impact your taxes, since you would lose her credit, so be careful.
[color=red]
<Raju> I calculated and found if my wife withdraws 30K RRSP this year our (my + wife's) total tax increases by $5958. If she withdraws as no resident [b]25%[/b] of 30K come to be $7500. So withdrawing now saves about 1.5K. I don;t know what will be US tax implication to this.>[/color]
And remember that spousal RRSP taken out be a Cdn resident is taxed in the hands of the person funding the account (which would be you). There is no such restriction when non-resident.
[color=red]<Raju> I haven't contributed her RRSP for more than 3 years. So 3 years attrition rule doesn't apply and all withdrawal is her income>
[/color]
I have written much on US taxation of RRSP, but realize that only growth after moving to US would be taxable in US, so it is beneficial to lower the Cdn tax as much as possible. She could use 217 to reduce the tax far below 25% and pay very little in US tax.
[color=red]<Raju> After I become US resident in 2016, Can I also use 217 while withdrawing from Canadian RRSP ? If yes how much each year? I will have some 2K GIC interest in Canada in 2016 and rest all income from US employment. So if tax is minimal, I would like to withdraw RRSPs and take the 217 route to lower tax.>[/color]
So, I would be waiting for 2016, when you are both clearly US residents, to remove her RRSP 15-20K per year at little or no Cdn or US tax, for the next 3 years. She is entitled to more than her personal amount on 217, she can include all medical expenses you both pay as well, for example.
[color=red]<Raju> Is there a rule that 217 can be used for only first 3 years after become non resident ? If yes can it be extended ? What is tax % if withdrawn above personal amount?
Regarding medical, I will have only US medical expenses. Can I claim US medical expenses in 217?
[/color]
You might decide simply to take all of your RRSP at 25% and be done with it.
[color=red]<Raju> We have RRSPs in Sunlife financial, which was funded by my employer, however I can withdraw now. They send me a letter at home and said if I'm a non resident, I must sign a new contract in CANADA or appoint a power of attorney resident in Canada to do on my behalf.
I will definitely use 217. Please advice how should I prceed. >[/color]
[/quote]
Hi Nelsona,
Thanks a lot for quick and prompt reply. I have added my inline comments in [color=red]red[/color] above against your recommendations. Looking forward for your valued recommendation to my questions.
Regards'
Raju[/quote]
[color=darkred][b]Sorry for a typo above where I mentioned non resident tax as 20%, it should have been 25% and that's how NR tax on 30K is 7.5K.[/b][/color][color=darkred][/color]
But, putting that aside, if you take your RRSP out this year, as a cdn tax resident, it will be added to your world income for the year, and your tax rate will be very high on this income, instead of flat 25% if you take it out after you leave Canada. So you would definitely wait.
For your spouse, since she has no income, she could withdraw some now, but this would impact your taxes, since you would lose her credit, so be careful.
[color=red]
<Raju> I calculated and found if my wife withdraws 30K RRSP this year our (my + wife's) total tax increases by $5958. If she withdraws as no resident [b]25%[/b] of 30K come to be $7500. So withdrawing now saves about 1.5K. I don;t know what will be US tax implication to this.>[/color]
And remember that spousal RRSP taken out be a Cdn resident is taxed in the hands of the person funding the account (which would be you). There is no such restriction when non-resident.
[color=red]<Raju> I haven't contributed her RRSP for more than 3 years. So 3 years attrition rule doesn't apply and all withdrawal is her income>
[/color]
I have written much on US taxation of RRSP, but realize that only growth after moving to US would be taxable in US, so it is beneficial to lower the Cdn tax as much as possible. She could use 217 to reduce the tax far below 25% and pay very little in US tax.
[color=red]<Raju> After I become US resident in 2016, Can I also use 217 while withdrawing from Canadian RRSP ? If yes how much each year? I will have some 2K GIC interest in Canada in 2016 and rest all income from US employment. So if tax is minimal, I would like to withdraw RRSPs and take the 217 route to lower tax.>[/color]
So, I would be waiting for 2016, when you are both clearly US residents, to remove her RRSP 15-20K per year at little or no Cdn or US tax, for the next 3 years. She is entitled to more than her personal amount on 217, she can include all medical expenses you both pay as well, for example.
[color=red]<Raju> Is there a rule that 217 can be used for only first 3 years after become non resident ? If yes can it be extended ? What is tax % if withdrawn above personal amount?
Regarding medical, I will have only US medical expenses. Can I claim US medical expenses in 217?
[/color]
You might decide simply to take all of your RRSP at 25% and be done with it.
[color=red]<Raju> We have RRSPs in Sunlife financial, which was funded by my employer, however I can withdraw now. They send me a letter at home and said if I'm a non resident, I must sign a new contract in CANADA or appoint a power of attorney resident in Canada to do on my behalf.
I will definitely use 217. Please advice how should I prceed. >[/color]
[/quote]
Hi Nelsona,
Thanks a lot for quick and prompt reply. I have added my inline comments in [color=red]red[/color] above against your recommendations. Looking forward for your valued recommendation to my questions.
Regards'
Raju[/quote]
[color=darkred][b]Sorry for a typo above where I mentioned non resident tax as 20%, it should have been 25% and that's how NR tax on 30K is 7.5K.[/b][/color][color=darkred][/color]
Im sorry but your use of quotes has made your post incomprehensible to me. Please don't quote, just add your questions.
My original advice stands: move your RRSP to a self-directed broker lik TD Direct, and wait until next year to begin taking funds for either or both of you.
You will not benefit for 217 while working in US. Your RRSP will be at 25%. 217 is for those with little other income.
Taking hers now will still be at 20% by your calc (not 14% like you originally said). With 217 over the next 3 years you will do MUCH better than 20%. I only mentioned 3 years as this is how long it would take to withdraw her $50 K nearly tax free. You can use 217 forever.
My original advice stands: move your RRSP to a self-directed broker lik TD Direct, and wait until next year to begin taking funds for either or both of you.
You will not benefit for 217 while working in US. Your RRSP will be at 25%. 217 is for those with little other income.
Taking hers now will still be at 20% by your calc (not 14% like you originally said). With 217 over the next 3 years you will do MUCH better than 20%. I only mentioned 3 years as this is how long it would take to withdraw her $50 K nearly tax free. You can use 217 forever.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Hi Nelsona,
I’m sorry to screw up the post. Because I switched HTML, I thought the tags will change color and font of my question, but wasn’t. OK, let me try as follows-
1. <Raju> I calculated and found if my wife withdraws 30K RRSP this year (my income 75K+ wife's 30K RRSP) our total tax increases by $5958. If she withdraws as no resident 25% of 30K come to be $7500. So withdrawing now saves about 1.5K. I don;t know what will be US tax implication to this. Did your calculation gives same result or more?
2. YOU SAID “You will not benefit for 217 while working in US. Your RRSP will be at 25%. 217 is for those with little other incomeâ€
<Raju> If my wife withdraws next year as nonresident ($0 US income + 2K Canadian GIC interest), can she benefits from 217 ? She will withdraw about 20K each year. Approx. how much TAX on withdrawal each year?
I have no plan to withdraw, but if I can lower tax, I would like to withdraw. Next year I have US income 80K + Canadian GIC interest 1K. Can I still benefits from 217 or because my US income is high, I will get no benefit of 217 and pay 25% for my RRSP withdrawal ?
3. YOU SAID “My original advice stands: move your RRSP to a self-directed broker like TD Direct, and wait until next year to begin taking funds for either or both of you.â€
<Raju> Do you think Sunlife will not allow me to withdraw or grow my RRSPs as non resident? How TD direct works? Can I open as non resident and withdraw any time and also trade funds or I have to open while I’m a resident now? Do you recommend TD e series funds, because I like Index funds for my RRSP, which I am not planning to take out now if I can’t exercise 217 route.
Thanks a lot for your help and have a Happy and Prosperous New year in advance.
Regards’
Raju
I’m sorry to screw up the post. Because I switched HTML, I thought the tags will change color and font of my question, but wasn’t. OK, let me try as follows-
1. <Raju> I calculated and found if my wife withdraws 30K RRSP this year (my income 75K+ wife's 30K RRSP) our total tax increases by $5958. If she withdraws as no resident 25% of 30K come to be $7500. So withdrawing now saves about 1.5K. I don;t know what will be US tax implication to this. Did your calculation gives same result or more?
2. YOU SAID “You will not benefit for 217 while working in US. Your RRSP will be at 25%. 217 is for those with little other incomeâ€
<Raju> If my wife withdraws next year as nonresident ($0 US income + 2K Canadian GIC interest), can she benefits from 217 ? She will withdraw about 20K each year. Approx. how much TAX on withdrawal each year?
I have no plan to withdraw, but if I can lower tax, I would like to withdraw. Next year I have US income 80K + Canadian GIC interest 1K. Can I still benefits from 217 or because my US income is high, I will get no benefit of 217 and pay 25% for my RRSP withdrawal ?
3. YOU SAID “My original advice stands: move your RRSP to a self-directed broker like TD Direct, and wait until next year to begin taking funds for either or both of you.â€
<Raju> Do you think Sunlife will not allow me to withdraw or grow my RRSPs as non resident? How TD direct works? Can I open as non resident and withdraw any time and also trade funds or I have to open while I’m a resident now? Do you recommend TD e series funds, because I like Index funds for my RRSP, which I am not planning to take out now if I can’t exercise 217 route.
Thanks a lot for your help and have a Happy and Prosperous New year in advance.
Regards’
Raju
Again, please stop quoting me, just ask your questions. I KNOW what I wrote.
Sunlife will not allow you to trade funds. If you intend to keep any of these RRSPs for more than a few months, you need to move them to a Cdn brokerage licensed in US, which TD Direct is -- they will let you trade. Same applies for your wif'e account.. You can wait until after you move to do this, but it would be best set up now, before you leave.
Forget 217 in your case. You will not benefit. Only your wife will as long as she is not working. she will be able to draw out ~15K per year at no tax after filing 217. She can also file an NR5 with CRA after she becomes non-resident, to reduce the withholding, and then file 217. If she withdraws this year, she will end up paying 20% like you calculated. if that was her entire RRSP, I might say take it now and be done. But since it is, not and she will use 217 next year anyway, I would wait (since that was your original question). She certainly is not "losing out" by waiting.
Remember that you BOTH need to tell all your financial firms (including GIC issuer) that you are US resident, as soon as you move.
As to your own situation, since you can't benefit from 217, you are slao not limited in how much RRSP you take out every year, at 25%. Unless you are in your 50's, or plan to return to Canada in a few years (like less than 5), you should seriously consider taking all the RRSP just after you leave. 25% Cdn tax. No US tax. The longer you leave it, and it grows, the more you will have in US tax to pay.
Sunlife will not allow you to trade funds. If you intend to keep any of these RRSPs for more than a few months, you need to move them to a Cdn brokerage licensed in US, which TD Direct is -- they will let you trade. Same applies for your wif'e account.. You can wait until after you move to do this, but it would be best set up now, before you leave.
Forget 217 in your case. You will not benefit. Only your wife will as long as she is not working. she will be able to draw out ~15K per year at no tax after filing 217. She can also file an NR5 with CRA after she becomes non-resident, to reduce the withholding, and then file 217. If she withdraws this year, she will end up paying 20% like you calculated. if that was her entire RRSP, I might say take it now and be done. But since it is, not and she will use 217 next year anyway, I would wait (since that was your original question). She certainly is not "losing out" by waiting.
Remember that you BOTH need to tell all your financial firms (including GIC issuer) that you are US resident, as soon as you move.
As to your own situation, since you can't benefit from 217, you are slao not limited in how much RRSP you take out every year, at 25%. Unless you are in your 50's, or plan to return to Canada in a few years (like less than 5), you should seriously consider taking all the RRSP just after you leave. 25% Cdn tax. No US tax. The longer you leave it, and it grows, the more you will have in US tax to pay.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Hi Nelsona,
I had death in my close family and so couldn’t take any action on my RRSP since we discussed last December.
As you advised my wife didn’t withdraw RRSP in 2015. This year onwards she will withdraw about 20K a year and also will file 217. I wanted to open TD direct trade account and transfer my and spousal RRSPs, but wanted to know how does it help? I am not going to actively trade and Sun life told me that they can carry my RRSP funds even if I’m nonresident. It’s mutual fund and I’m not personally trading and so it’s fine. I wanted to avoid transferring hassle if it is unnecessary. Sun life told me that my wife can withdraw money even after becoming on resident and only during withdrawal they will provide T4RSP, which she will report in Canadian non-resident return in 2016 with 217 election and then to IRA. Next time onwards I believe CRA will advice Sun life not to deduct 25% if she withdraw same 20K amount every year after NR5 is approved (am I correct?).
I will carry RRSPs since I am working I US and 217 doesn’t saves me. I will let the fund grow and eventually when I return back to Canada after 3 to 6 years, I will continue that RRSP. Of course I will pay the growth as tax to IRA which is negative at this moment due to Canadian economy.
Please advice if my above planning is work and save some taxes for both of us.
Thanks a lot for your help and have a good day!
RAJUMONI
I had death in my close family and so couldn’t take any action on my RRSP since we discussed last December.
As you advised my wife didn’t withdraw RRSP in 2015. This year onwards she will withdraw about 20K a year and also will file 217. I wanted to open TD direct trade account and transfer my and spousal RRSPs, but wanted to know how does it help? I am not going to actively trade and Sun life told me that they can carry my RRSP funds even if I’m nonresident. It’s mutual fund and I’m not personally trading and so it’s fine. I wanted to avoid transferring hassle if it is unnecessary. Sun life told me that my wife can withdraw money even after becoming on resident and only during withdrawal they will provide T4RSP, which she will report in Canadian non-resident return in 2016 with 217 election and then to IRA. Next time onwards I believe CRA will advice Sun life not to deduct 25% if she withdraw same 20K amount every year after NR5 is approved (am I correct?).
I will carry RRSPs since I am working I US and 217 doesn’t saves me. I will let the fund grow and eventually when I return back to Canada after 3 to 6 years, I will continue that RRSP. Of course I will pay the growth as tax to IRA which is negative at this moment due to Canadian economy.
Please advice if my above planning is work and save some taxes for both of us.
Thanks a lot for your help and have a good day!
RAJUMONI
You do not want to leave the funds at Sunlife for 2 reasons:
1. Individual funds can go sour, and you will be stuck with them
2. Sunlife could change their policy and ask you to either transfer or de-certify your RRSP. Better to move when YOU choose, than when THEY tell you to.
Remember you only pay (some) tax to IRS when you withdraw funds. So, if you don't wiothdraw funds from RRSP while in US, you won't have to pay any US tax.
Your wife will apy minimal US tax when she does withdrawals, based on her Book value when she arrives in US (or jan 1 of that year).
1. Individual funds can go sour, and you will be stuck with them
2. Sunlife could change their policy and ask you to either transfer or de-certify your RRSP. Better to move when YOU choose, than when THEY tell you to.
Remember you only pay (some) tax to IRS when you withdraw funds. So, if you don't wiothdraw funds from RRSP while in US, you won't have to pay any US tax.
Your wife will apy minimal US tax when she does withdrawals, based on her Book value when she arrives in US (or jan 1 of that year).
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Thanks for prompt reply.
My funds already gone sour and if I take money out now, both I and my wife will be losing about 5K compared to last year. All Sun life funds are going down.
Can I open TD Direct after become nonresident and the ask for transfer from Sun life to TD while I'm non resident ? I want to do it in next 3-6 months when funds value will improve (I hope).
Right now my funds are at Sunlife Canadian employer sponsored RRSP, which I have to move to standard plan (like every other RRSP investor with more Fund management fees) since I don't work for that employer any more after I moved to US. Sunlife told me that they can do that over phone when I call them from a Canadian Phone number. They can’t do it if I am in US. I didn’t understand the trick here. But they said after transferred to standard plan, they can carry funds while I’m in US and also withdraw money, no issue what so ever.
Regards’
RAJUMONI
My funds already gone sour and if I take money out now, both I and my wife will be losing about 5K compared to last year. All Sun life funds are going down.
Can I open TD Direct after become nonresident and the ask for transfer from Sun life to TD while I'm non resident ? I want to do it in next 3-6 months when funds value will improve (I hope).
Right now my funds are at Sunlife Canadian employer sponsored RRSP, which I have to move to standard plan (like every other RRSP investor with more Fund management fees) since I don't work for that employer any more after I moved to US. Sunlife told me that they can do that over phone when I call them from a Canadian Phone number. They can’t do it if I am in US. I didn’t understand the trick here. But they said after transferred to standard plan, they can carry funds while I’m in US and also withdraw money, no issue what so ever.
Regards’
RAJUMONI
See. Sunlife is making your life complicated already and you have not left yet. You can transfer to TD before OR after you leave, so you should do so as soon as possible.
in fact, if your finds have lost money, it would be best not to touch them until after you leave, as the book value is higher than the market value, meaning less eventual tax in US.
But, in general, no mutual fund remains a perfect investment for more than 2-3 years, especially if you are no longer buying at the low price, so you want to be able to move these occasionally from one group/family to another with ease. sunlife won't let you do that.
in fact, if your finds have lost money, it would be best not to touch them until after you leave, as the book value is higher than the market value, meaning less eventual tax in US.
But, in general, no mutual fund remains a perfect investment for more than 2-3 years, especially if you are no longer buying at the low price, so you want to be able to move these occasionally from one group/family to another with ease. sunlife won't let you do that.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best