Form 8891 - moving RRSP from one CDN bank to another

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mikec2
Posts: 14
Joined: Thu May 03, 2007 10:15 am

Form 8891 - moving RRSP from one CDN bank to another

Post by mikec2 »

I am just preparing my 8891 forms as I have done last year for my canadian RRSP. I live in canada and that is my tax home, but i am a dual citizen. In 2005 I had 3 RRSP at 3 canadian banks. During 2006 i moved funds from one and merged them into another, leaving me with 2 RRSP at the end of 2006. I presume for 2006 i must do an 8891 form for the closed account as it existed for much of 2006. I was guessing that i should show on line 8 my balance as 0 and then include a letter of explanation. The money from this RRSP is incorporated in the other RRSP now and is included in the total on line 8 for that RRSP. I did not show this as a contribution on line 9 as it is not a new contribution. The canadian tax effect of this is 0, and i hope that the same will be true of my US tax return. For 2007 and later i would only file for the remaining RRSP.

Does this seem like the right thing to do?
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

That sounds correct. While, technically, the old RP 02-2003, which is supposed to govern the use of 8891, stated that even a statement had to be provided yearly even old RRSP which was rolled over into a new one, this has never made much sense.

I would do as you outlined. As you said, The rollover is NOT a contribution, and there is no tax resulting from this transfer.
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
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