So me and my wife are Canadian citizens living in the USA. I still work in Canada and she works in the US. I'm on a TD visa through her TN. We are not 100% sure if we will live permanently in the US as we might move back to Canada.
I have questions regarding investments.
I still work in Canada and will receive a pension when I retire.
I have some money in my RRSP account that I contributed BEFORE i moved to the US.
I emptied out my TFSA before moving to the states as I feared i'd be taxed on any growth in the account and we needed money for a house.
I have money in a taxable (non-reg) account in Canada.
My wife has no money in her RRSP or TFSA account in Canada.
My wife works in the US and contributes to a Roth 401K (we pay the tax upfront but any growth is tax free).
When we moved to the US we declared temporary leave from Canada, I declared the value of my assets at the time of leaving.
Questions:
what would be the smartest way to handle our retirement/current investments?
Can we contribute to RRSP? should we max out my wife's 401K? set up an IRA account?
CDN citizen living in US while still working in Canada
Moderator: Mark T Serbinski CA CPA
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ChrisJenMiloUSA
- Posts: 4
- Joined: Mon Oct 09, 2017 8:06 pm
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ChrisJenMiloUSA
- Posts: 4
- Joined: Mon Oct 09, 2017 8:06 pm
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ChrisJenMiloUSA
- Posts: 4
- Joined: Mon Oct 09, 2017 8:06 pm
Thanks for that important info. You should be getting of the non-registered account, since you are no longer resident of Canada.
Since you are a non-resident of Canada, but working in Canada, you will be filing a "normal" tax return for a resident of that province, but will only report your work income. It is probably a good idea to keep funding your RRSP (but it is best if it is your WORK RRSP, not a personal one), as you will still want to reduce your Cdn/Prov tax, to reduce your overall tax.
You will report all your Cdn income on your US tax return. You can get credit for the Cdn/Prov tax you pay, as well as EI/CPP. You will be allowed to claim up to US$18000 as a deduction on your 1040 in US if you use your employer RRSP. You cannot deduct any private RRSP contributions on 1040. You will need to keep track of any non-deductible contributions you make, for future US taxation of any RRSP withdrawals, if you reamin in US permanently. Keep a god record of what your personal RRSP was worth when you moved, too.
Since she has a Roth401(K) she should keep funding that. if you fund anything it should be a RothIRA.
Since you are a non-resident of Canada, but working in Canada, you will be filing a "normal" tax return for a resident of that province, but will only report your work income. It is probably a good idea to keep funding your RRSP (but it is best if it is your WORK RRSP, not a personal one), as you will still want to reduce your Cdn/Prov tax, to reduce your overall tax.
You will report all your Cdn income on your US tax return. You can get credit for the Cdn/Prov tax you pay, as well as EI/CPP. You will be allowed to claim up to US$18000 as a deduction on your 1040 in US if you use your employer RRSP. You cannot deduct any private RRSP contributions on 1040. You will need to keep track of any non-deductible contributions you make, for future US taxation of any RRSP withdrawals, if you reamin in US permanently. Keep a god record of what your personal RRSP was worth when you moved, too.
Since she has a Roth401(K) she should keep funding that. if you fund anything it should be a RothIRA.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
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ChrisJenMiloUSA
- Posts: 4
- Joined: Mon Oct 09, 2017 8:06 pm
[quote="nelsona"]Thanks for that important info. You should be getting of the non-registered account, since you are no longer resident of Canada.
Since you are a non-resident of Canada, but working in Canada, you will be filing a "normal" tax return for a resident of that province, but will only report your work income. It is probably a good idea to keep funding your RRSP (but it is best if it is your WORK RRSP, not a personal one), as you will still want to reduce your Cdn/Prov tax, to reduce your overall tax.
You will report all your Cdn income on your US tax return. You can get credit for the Cdn/Prov tax you pay, as well as EI/CPP. You will be allowed to claim up to US$18000 as a deduction on your 1040 in US if you use your employer RRSP. You cannot deduct any private RRSP contributions on 1040. You will need to keep track of any non-deductible contributions you make, for future US taxation of any RRSP withdrawals, if you reamin in US permanently. Keep a god record of what your personal RRSP was worth when you moved, too.
Since she has a Roth401(K) she should keep funding that. if you fund anything it should be a RothIRA.[/quote]
I think I would like to set up a meeting to discuss this further.
Since you are a non-resident of Canada, but working in Canada, you will be filing a "normal" tax return for a resident of that province, but will only report your work income. It is probably a good idea to keep funding your RRSP (but it is best if it is your WORK RRSP, not a personal one), as you will still want to reduce your Cdn/Prov tax, to reduce your overall tax.
You will report all your Cdn income on your US tax return. You can get credit for the Cdn/Prov tax you pay, as well as EI/CPP. You will be allowed to claim up to US$18000 as a deduction on your 1040 in US if you use your employer RRSP. You cannot deduct any private RRSP contributions on 1040. You will need to keep track of any non-deductible contributions you make, for future US taxation of any RRSP withdrawals, if you reamin in US permanently. Keep a god record of what your personal RRSP was worth when you moved, too.
Since she has a Roth401(K) she should keep funding that. if you fund anything it should be a RothIRA.[/quote]
I think I would like to set up a meeting to discuss this further.