confirm US tax on RRIF withdrawals

[bwafusion]

I know this topic has been covered many times but each individual situation is a little different so I am just looking for confirmation of my understanding.

My immigration history: CDN citizen moved to US on H visa late 1992. Did not step up any cost basis in RRSP then. Became a US resident for tax purposes effective Jan 1, 1993 by SPT. Green card issued in 1995. Became US citizen in 2000. Moved back to Canada in 2003. Planning to retire and return to US soon and start taking RRIF withdrawals.

Questions:
1. From a US perspective, all RRSP contributions and growth (interest, dividends, and realized capital gains) up to Jan 1,1993 are considered principal and can be withdrawn tax free. Correct?
2. After Jan 1, 1993 all further contributions are still considered principal. Correct?
3. After Jan 1, 1993 all RRSP growth (interest, dividends, and capital gains when realized) is taxable. Correct? (Note: tax has been deferred from 1993 to present by filing appropriate Forms)

Thank you!

[nelsona]

All accurate, except that since you did not step up the value before arriving on jan 1, 1993, it is only the BOOK value of the account at that date that is non-taxable from US point of view, not the market value. Your contributions since then are also considered non-taxable, as you said.

I would think the difference between book value and market value as compared to your entire RRIF is negligible, but that is how to determine it.

Going forward, you will prorate the taxable and non-taxable part based on the value at the beginning of the year, reducing the non-taxable paortion year-by-year thereafter.

Btw, I assume you got your 40 quarters of SS, since you were working in US for about 10 years?

[bwafusion]

Thanks for the quick reply! Yes, I do qualify for SS and Medicare. Wahoo!