RiF/IRA
Moderator: Mark T Serbinski CA CPA
RIF/IRA
Thank you, Nelsona.
I would like your opinion on a related issue. In addition to the RIFs accounts (mine and my wife's), we receive OAS and CPP payments that are deposited to a Canadian bank account. Since I don't need the money, at the moment, and the exchange rate is extremely unfavorable, I have accumulated a significant amount of cash in the account (over $150k).
I should also mention that we receive Social Security benefits and have RMD's from IRA's accounts in the States.
I understand that, as a US resident, I cannot, legally, invest the cash in Canada, except GICs, which pay almost nothing or real estate, which is too expensive and complicated.
I have, recently, talked to a financial adviser, affiliated with the Canadian bank, who offered to move all my Canadian assets (RIFs and cash) to an account managed by the firm. However, in order to have them manage the money, they want me to change my residence status, for tax purposes, to Canada. If I do that will I have to change the OAS and CPP benefits from a non resident, and no tax in Canada, to a resident subject to regular tax? And in general, will it not actually increase my tax liability to Canada and complicate the filing on both sides of the border?
Would appreciate very much your advice.
I would like your opinion on a related issue. In addition to the RIFs accounts (mine and my wife's), we receive OAS and CPP payments that are deposited to a Canadian bank account. Since I don't need the money, at the moment, and the exchange rate is extremely unfavorable, I have accumulated a significant amount of cash in the account (over $150k).
I should also mention that we receive Social Security benefits and have RMD's from IRA's accounts in the States.
I understand that, as a US resident, I cannot, legally, invest the cash in Canada, except GICs, which pay almost nothing or real estate, which is too expensive and complicated.
I have, recently, talked to a financial adviser, affiliated with the Canadian bank, who offered to move all my Canadian assets (RIFs and cash) to an account managed by the firm. However, in order to have them manage the money, they want me to change my residence status, for tax purposes, to Canada. If I do that will I have to change the OAS and CPP benefits from a non resident, and no tax in Canada, to a resident subject to regular tax? And in general, will it not actually increase my tax liability to Canada and complicate the filing on both sides of the border?
Would appreciate very much your advice.
You cannot simply "change: your residency status. You can MOVE back to Canada if you wish, but to do this simply to satisfy this agent of the bank would seem foolish. Seems he just wnts to get your commissions.
If he is asking you to fake residency, he is unethical.
There are a couple of firms that can set up accounts for you because they are licensed across borders. Pacifica and Blackmont
If you really don't want to move your funds to US (I don't see why not), then try these firms, not some unethical bank.
If he is asking you to fake residency, he is unethical.
There are a couple of firms that can set up accounts for you because they are licensed across borders. Pacifica and Blackmont
If you really don't want to move your funds to US (I don't see why not), then try these firms, not some unethical bank.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
In my opinion, regardless of the exchange rate, which is historically right about average now, you made a mistake by accumulating so much in Canada.
Don't compound the problem by listening to someone who OBVIOUSLY has a vested interest in getting you to mess up your life.
Don't compound the problem by listening to someone who OBVIOUSLY has a vested interest in getting you to mess up your life.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing