Hello,
I am a Canadian citizen with Green Card living in the US.
I hold an RRSP account which I have been reporting with FBAR form annually. I have not made contributions to the account since leaving Canada.
I want to move the current RRSP funds to a new RRSP account with higher interest rate but am wondering if doing so would have negative tax implications - ie. would this action be considered as new contributions to an RRSP while non-resident of Canada? Would this lead to penalties? How would I report this on the FBAR form?
Thanks in advance for any advice you may have!
Managing my RRSP account while in the US
Moderator: Mark T Serbinski CA CPA
This would not be considered a new contribution, but even if it was, there are no tax penalties for contributing as a non-resident.
What there is however is strict regulations on who you can hold your RRSP with, as US resident. I'm surprised that this has not come up in your case, since it would appear you are dealing with a bank, and banks are not allowed to deal with US customers, only specifically-licensed brokers?
Are you spoofing a Cdn address on your account?
For FBAR you would simply report both accounts, and the max value each had during the year.
What there is however is strict regulations on who you can hold your RRSP with, as US resident. I'm surprised that this has not come up in your case, since it would appear you are dealing with a bank, and banks are not allowed to deal with US customers, only specifically-licensed brokers?
Are you spoofing a Cdn address on your account?
For FBAR you would simply report both accounts, and the max value each had during the year.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Nelsona, thank you for this info! I was not aware that there are strict regulations re. who I can hold RRSPs with.. it is an online bank if that makes any difference?
When I moved to the US I did update my address with the bank with my current US address. The only other dealings with this bank after I moved was to close my Canadian accounts except for my RRSP.
How do I know if I need to take any action? Thanks again!
When I moved to the US I did update my address with the bank with my current US address. The only other dealings with this bank after I moved was to close my Canadian accounts except for my RRSP.
How do I know if I need to take any action? Thanks again!
When you updated your address, did you also tell them you were MOVING to US. Its not necessarily the same thing in their eyes.
In any event, it is unlikely that you will be able to move your RRSP to another bank. I would be also advising you not to be investing in interst bearing accounts, but that is another story.
In any event, it is unlikely that you will be able to move your RRSP to another bank. I would be also advising you not to be investing in interst bearing accounts, but that is another story.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
I'm pretty sure that I told the bank I relocated to the US. At the time the banker advised that I change my account to a higher interest yielding RRSP because I would not be needing the funds any time soon (not planning to move back in the near future, not close to retirement age) but I declined because I did not know if that would be allowable without penalty/penalties.
I am revisiting the idea now but it sounds like you're saying I'm best to leave my money as is?
I am revisiting the idea now but it sounds like you're saying I'm best to leave my money as is?