RRSP dedcution allowed for the year that you move to US?

chicagobuy · Post by **chicagobuy** » Wed Mar 09, 2016 1:52 am

I am planning to move to US for a 3 year term.

I have maxed my RRSP limit for 2015.

I plan to move to US in around June 2016. I do understand that I can not contribute to my RRSP after moving to US.

Is it okay if I contribute to my RRSP up to the full 2016 RRSP limit? This way I can decrease my tax liability of 2016 for part of the income generated while being in Canada.

Thanks for your help.

Cheers.

nelsona · Post by **nelsona** » Wed Mar 09, 2016 12:38 pm

You can contribute upto your limit before you leave. Legally you can do so after, but most brokerages will not accept new funds from US residnts.

You also need to make sure that your RRSP manager will keep you a s a client. None of the bank mutual fund orgs will. You need a self-directed brokerage like TD direct for example, and not TD Canada trust

agrisiva · Post by **agrisiva** » Wed Mar 09, 2016 12:48 pm

Thanks Nelsona for your reply. Wow, good to see your opinion. My wife just contributed the full limit of her RRSP for the tax year 2016 in Canada. We may move to the US sometime this year, if she gets a job there.

nelsona · Post by **nelsona** » Wed Mar 09, 2016 1:09 pm

Well, you never want to contribute when it reduces your tax to, say, the lowest Cdn bracket, since that will mean you will pay more tax coming out, that you saved going in.

But of she is making lots of money (50K+) then it was a good idea, otherwise no.

chicagobuy · Post by **chicagobuy** » Wed Mar 09, 2016 3:55 pm

nelsona,

Thanks for your answer.

I am with Questrade and they have said that they can work with US residents. Based on your previous replies to other people I might change it to TD waterhouse since they have substantial prescence in US/Canada.

nelsona · Post by **nelsona** » Thu Mar 10, 2016 10:27 am

TD's presence in US gives you NOTHING. You will only deal with their Markham office. TD in US is completely separate, nd will not do anything for your account.

If you are happy with questrade then stay with them.

agrisiva · Post by **agrisiva** » Thu Mar 10, 2016 1:15 pm

My wife's RRSP is also with Questrade. She is happy with them so far and going to stay with them even if we move to the US.

nelsona · Post by **nelsona** » Thu Mar 10, 2016 3:54 pm

As long as you clear it with them. Questrate (or any broker) is licensed state by state. You need to advise them exactly where you will live.