USC taking early retirement, returning to US in 2016

[Shel]

My husband and I are USCs/Canadian PRs, and have lived in Canada for 9 years. We own a home here, have the usual bank accounts, and an RPP at my husband's job. No RRFPs or TFSAs. I am not employed. We have maintained a checking account in the US, and have tax-deferred retirement plans and Roth IRAs in the US, but have made no contributions since we moved here. We are planning to return to the US permanently in December 2016. Neither one of us anticipate working full-time when we return to the US, but there will be a bit of contract work income.

My husband is looking into early retirement at the end of this year, and we're hoping we can exit Canada completely at that time. An incentive payout is being negotiated, something between 6 months to a year of his salary. His retirement date must be effective on the first day of the month.

He is in academia, and would ordinarily be working in December, so his retirement date would be January 1, 2017. How does that retirement date and payout affect our plans for departure in December 2016? Does it make more sense to retire on December 1, 2016? Or is there a way to work with the Jan. 2017 effective date?

Thank you.

[nelsona]

It would actually be better have the payout in January, since it will occur in a year with less income. It should not affect your moving date in any way.

[nelsona]

... which can still be in December if you have severed ties sufficiently by then.

[Shel]

Thanks, we were hoping that would be the case! We do intend to have all ties severed by then.

We're also using Serbinski's tax services this year, and next year too, to make sure we are covered.

[nelsona]

Very expensive...