IRA on return to Canada

[goldstone]

A Canadian moves to the USA and invests in an IRA and then subsequently moves back to Canada.

What would his options be for the IRA ? Would it have to remain in the USA or could it be transferred to a Canadian RSP or TFSA ?
Does it make any difference if it is a Traditional or a Roth IRA ?

Thanks for any advice !

[nelsona]

There has been many posts on the wisdom (or not) of making such a "transfer".
Happy browsing.

[olivew211]

When you head back to Canada, you can't just transfer your IRA directly to an RRSP or TFSA without some tax consequences. A Traditional IRA usually means you'll face taxes when you withdraw, while a Roth IRA can offer tax-free withdrawals under certain conditions. Most people find it easier to keep the IRA in the U.S. for now. It might be worth chatting with a tax pro to get the best advice for your situation.

[BeaconHillWealth]

Although possible, in most cases it doesn't make sense to transfer an IRA to an RRSP. First, you'll need roughly an amount of Canadian income equal to the IRA transfer and for larger IRAs it would have to be transferred over many years. That can be quite a bit of tax work on the Canadian side.

Most of our clients simply transfer their IRA to us in Canada in-kind.

However, for smaller IRAs the transfer to an RRSP could make sense.

Phil

olivew211 wrote:
> When you head back to Canada, you can't just transfer your IRA directly to
> an RRSP or TFSA without some tax consequences. A Traditional IRA usually
> means you'll face taxes when you withdraw, while a Roth IRA can offer
> tax-free withdrawals under certain conditions. Most people find it easier
> to keep the IRA in the U.S. for now. It might be worth chatting with a tax
> pro to get the best advice for your situation.