timing of RRSP conversion
Moderator: Mark T Serbinski CA CPA
timing of RRSP conversion
We are dual CDN/US citizens ages 67/64 currently living in Canada but departing permanently to the US later this year. Is it necessary to convert our RRSPs to RRIFs before departure or can this be done after departure? Any advantage to one vs. the other? thanks
Re: timing of RRSP conversion
t can be done after you leave. Be sure to notify your trustee that you are moving to the US. Some trustees will not allow you to trade in your account once you leave, so you would want tp move your account to one that does.
Withdrawals from RRSPs by US residents are taxed at 25% flat by CRA, while RRIF withdrawsl, if less than 10% per year, are only taxed at 15%. US taxtion is based on growth after after contributions, so you will have needed to track contributions (in USD) thoughout the lifetime, or since you become US citizens.
Withdrawals from RRSPs by US residents are taxed at 25% flat by CRA, while RRIF withdrawsl, if less than 10% per year, are only taxed at 15%. US taxtion is based on growth after after contributions, so you will have needed to track contributions (in USD) thoughout the lifetime, or since you become US citizens.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best