TN/TDs (to GC) with RRSP?

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marwan

Registered Users (C)
To those who are now perm residents of US or those who have intention to live in the US permanently, what did you do with your RRSP accounts? Advices are appreciated.
 
marwan said:
To those who are now perm residents of US or those who have intention to live in the US permanently, what did you do with your RRSP accounts? Advices are appreciated.
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I was having the same question. After doing some research, I came to this conclusion:

I have a RRSP account - I found out that since the money is not that much (and falls below the tax threshold), I will not be taxed on that money from the cdn side. (I hoped to get the refund of the tax that was withheld while withdrawing the money). But since I am a US resident, I will be taxed on that money by the IRS. So I decided to keep the money in my RRSP account.
Any comments/suggestions regarding my logic is welcome.

(BTW: One advantage is that since US$ and CD$ is almost equal, you will lose minimum money in the conversion).
 
the best is to contact a CPA who is familiar with the cross border tax laws. look for US tax forums. someone may have your answer.
 
Looks like we're heading into that direction, hire a CPA. I got two resources here and both authors are telling me to withdraw my RRSP -- with 25% withholding!!! rather than allow Uncle Sam to tax me on this income so long as I maintain these accounts. Has anyone filed a return declaring RRSP as part of his income? Also, I read about tax free RRSP withdrawals for non-working spouses (?)
 
marwan said:
I got two resources here and both authors are telling me to withdraw my RRSP -- with 25% withholding!!! rather than allow Uncle Sam to tax me on this income so long as I maintain these accounts.
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You need to find better advisers. Under the Tax Treaty, there is no taxation on RRSP accounts until you withdraw the money. It continues to grow tax-free, just like it did in Canada.
 
As was pointed out, RRSPs are afforded the same protection form tax in US as in Canada -- as long as you file Form 8891 every year.

When you do withdraw the funds you will have 25% (or 15% if a RRIF) Cdn non-resident withheld at source. It does not matter how little the RRSP is. If you have little or no other world income the year you make a withdrawal, you can submit a 217 return to get some or all of the withheld tax back.

Without getting into too much details about the US taxatuon of any RRSP withdrawal. the rule of thumb is that IRS will tax the growth from the period after you arrived in US.

Any other details should be sought at forums.serbinski.com
 
nelsona said:
As was pointed out, RRSPs are afforded the same protection form tax in US as in Canada -- as long as you file Form 8891 every year.

When you do withdraw the funds you will have 25% (or 15% if a RRIF) Cdn non-resident withheld at source. It does not matter how little the RRSP is. If you have little or no other world income the year you make a withdrawal, you can submit a 217 return to get some or all of the withheld tax back.

Without getting into too much details about the US taxatuon of any RRSP withdrawal. the rule of thumb is that IRS will tax the growth from the period after you arrived in US.

Any other details should be sought at forums.serbinski.com
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What is a 217 return? Never heard of it..
 
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