RRSPs For Americans In this episode of Crossing the 49th, Newsglobal from Beacon Hill Wealth Management discusses the tax implications of holding and withdrawing from an RRSP as a U.S. resident. Learn how the Canada-U.S. tax treaty affects RRSPs, foreign tax credits, and how to plan your withdrawals to minimize tax liabilities. Key Topics: Tax…
Why it’s a bad idea to transfer your US IRA to your Canadian RRSP ep#29 On episode #29 of Crossing the 49th Podcast, we discuss why transferring your IRA to an RRSP might not be a good idea. Understanding Why You Should Think Twice Before Transferring Your IRA to an RRSP | Cross-Border Tax and…
Why it’s a bad idea to transfer your IRA to your RRSP Executive Summary IRAs are tax-advantaged U.S. retirement accounts with different tax implications in Canada. Canadian residents, with or without U.S. citizenship, can own U.S. IRAs, but specialized management is recommended. IRA withdrawals are taxed differently for Canadians based on their U.S. tax status….
California residents with Canadian RRSP – Need tax help! Key Points California residents with Canadian RRSPs must navigate complex U.S. and state tax rules. The U.S. requires annual reporting of RRSPs on IRS forms to avoid penalties. California does not recognize RRSP tax deferral, leading to potential double taxation. Proper planning is essential to minimize…
Help please. I have inherited a U.S. traditional IRA (I am Canadian, living in Canada) Key Points Inheriting a U.S. Traditional IRA as a Canadian resident involves complex tax considerations in both countries. The Canada-U.S. tax treaty allows for tax deferral but requires careful planning to avoid double taxation. Distributions from an inherited IRA are…
Tax withholdings on RRSP withdrawal to Italy Key Points RRSP withdrawals by Canadian residents moving to Italy are subject to a 25% withholding tax by Canada. The Canada-Italy tax treaty may reduce the withholding tax on RRSP withdrawals under certain conditions. Properly reporting RRSP withdrawals on both Canadian and Italian tax returns is essential to…
Gifting Canadian RRSP to Children Key Points Gifting a Canadian RRSP to your children is not allowed, as RRSPs cannot be transferred during your lifetime without triggering taxes. Withdrawals from an RRSP are fully taxable as income, making direct gifts of RRSP funds costly for the giver. Upon the holder’s death, RRSPs can be transferred…
What should we do with our IRA and RRSP when we move to Canada? Key Points Managing IRAs and RRSPs after moving to Canada requires careful consideration of cross-border tax implications. IRAs can continue to grow tax-deferred, but withdrawals may be taxed in both the U.S. and Canada. RRSPs are recognized by the U.S. for…
My advisors is telling me to withdraw my IRA? Question Hi Phil, I’m a member of the Facebook page. Maybe you can help me with some planning I’m trying to do for the coming year. I moved to Canada last year and my plan is to remain in Canada permanently. The only thing left in…
Cross-Border FAQ: CRA reviews, W8, Inheritances, IRA or RRSP? – Episode 12 On episode #12 of Crossing the 49th Podcast we walk through some frequently asked questions regarding cross-border tax and financial planning. I speak to lots of cross-border clients each week and I’ve compiled a list of some of the most asked questions I…
Cross-Border Tax QA – FBARs, 1116, IRA Transfers and Other As you can imagine I receive a significant amount of cross-border tax questions each and every week. Given some of these questions are quite frequent I thought it might be helpful to post some answers to some of the most frequently asked cross-border tax questions…
Need help with estate planning in Victoria Question Hi Phil I got your contact info from my long-term lawyer XXXX XXXXX. He will be helping with my estate matters but I also have a bunch of US based issues, estate planning and investments that I need help with. Not to mention a rather large US…
30% withheld from US SEP IRA to Canadian resident Question I’m 60 and have a Vanguard SEP-IRA with $448K USD in the US. Vanguard now *always* withholds 30% on withdrawals (unless an RMD at 71) and won’t allow non-residents to change asset allocation. I think I want to lump sum move the funds to my…
How to invest my inheritance? Question I was very fortunate last year and received over $300,000 from my grandmother as an inheritance when she passed away. I still have the money sitting in a bank account and I don’t know how to invest it. Also, some people say that I need to pay tax on…
Should I convert my US IRA to my RRSP? Question Thanks for the help earlier. Before she proceeds with finding an advisor who can manage her us-registered IRA, she wants to confirm the following with you. Can you confirm that it is not advisable for her to convert a $700K IRA to an RSP, because…
Moved to Canada with 401k accounts – What are my options? Question Hello Phil, I’m a follower of your Youtube channel and would like to thank you for the educational videos you share. It is very informative and the content is delivered in an easy to understand manner. I have a query regarding 401k accounts. My…
Should I Transfer my IRA to my RRSP? Question Hi Phil I had this question from XXXXX at RBC, but she said I should touch base with you to review what our options might be. I have a IRA in the US (around $700,000) and a smaller RRSP up here in Canada with RBC. I…
RRSPs and US Expats – Episode #7 On episode #7 of Crossing the 49th we discuss Canadian RRSPs and how they affect US expats living in Canada. What are RRSPs? How do they work? Tax deduction Spousal RRSPs Home buyers plan When they RRIF 71 years old Impact on US Citizens in Canada? US IRA…
How to transfer US investments to Canada, including ROTH IRA Question Hi Phil We spoke a few years back when my wife and I were planning on moving to Victoria. We put those plans off for a few years but now we’re committing to actually make the move next year. To give you a recap…
5 Options for Canadians with US IRAs- Expat Tax Podcast On episode #5 of the Expat Tax and Financial Planning Podcast we discuss some options for Canadians holding US IRA accounts. Whether you moved up to Canada with a pre-existing IRA or have inherited an IRA from a relative living in the US the following…
What is a 401k in Canada? Question I’ll be relocating to Canada closer to the end of the year. I currently have a 401k that I contribute to through my employer. I will still be working for the same employer when I move to Canada (remotely). Should I continue contributing to my 401k? What is…
Thinking of retiring to Canada – Tax and Investment Questions Question Hi Phil I found your contact info through the facebook group for Americans in Canada. Great group by the way, we’ve learned a lot for far. My wife and I (she’s Canadian and I’m American) will be moving to Canada in late 2021 and…
ROTH IRA and TSFA Questions Question Hello! This is Erin from the recent question about what to do with American investments. A little about me: I make 12k USD per year through remote work for an American company. I make about 30k Canadian self employed income. Is it possible to invest in both TFSA and…
Canadian Wealth, Inheritance and Estate Tax I get these questions all the time, does Canada have a wealth, inheritance or estate tax? The quick answer, at least for now, is no… Canada doesn’t currently have any type of wealth tax other than a final death tax that calculates and taxes a taxpayer’s final capital gain…
US Resident Cashing Out RRSP Question Hello Phil, I found your commentary very helpful as I have been considering cashing out my RRSP and reinvesting in the US: https://www.hutcheson.ca/tax-on-rrsprrif-payments-after-moving-to-the-u-s/ I am Canadian living in the US and have been here along with my wife since XXXX. At the time we left our RRSP’s and let…
Ultimate Cross Border Investment Guide We get a lot of questions regarding inheritances between Canada and the US. Whether it’s a Canadian client receiving an inheritance from a US relative or a US resident receiving an inheritance from their Canadian relatives, the tax intricacies can be significant and difficult to navigate. Outlined below are some…
American Moving to Canada – I Need Help! Question Hi there I’ve finished my paperwork with my immigration lawyer and we’ll be making the move up to Victoria in early 2018. She told me to ensure I got the advice of an international tax expert to sort out any tax issues I’ll be facing and…
Inherited IRA from Father in the US. What are my options? Question Hi Phil I inherited a fair sized IRA (over $600,000) from my US citizen father who resided in the US for over 30 years. My current Canadian broker is suggesting that I collapse the IRA and transfer a portion to my RRSP. The…
How to Transfer my IRA to Canada (or into an RRSP)? Question Hi Phil I moved to Canada in 2008 from Texas. I still have a sizable IRA in the US and in order to simplify my life I would like to move the account or funds up to Canada. Of course, I would prefer…
Should I convert my IRA before moving to Canada? Question Hello, I have a question…I’m planning on moving to Canada (I’m a US citizen) in the next few months and I’m wondering whether I should convert my existing IRA ($200,000) to a ROTH IRA or enter Canada and roll it into an RRSP. What are…
Do I pay US tax on interest earned from the US? Question Hello Phil, I have what I hope is a simple question. If a Canadian resident earns interest income on money invested in the US, does the Canadian resident then have to file US income tax? If so, is an ITIN number needed by…
RRSP payment to UK resident withholding tax? Question Hello, I moved from Canada in 2003 and left my RRSP in Canada. I’m planning on withdrawing $10,000 from the RRSP this year. How much Canadian tax will they withhold? Thanks for your time. XXXXX Answer Hi XXX Canada will withhold 25% of the RRSP payment at…
Cross Border Tax Q&A – Tax Forms For RRSPs in the US? Question Hi Phil My US accountant told me that my Canadian RRSPs are not taxable in the US, however someone told me that I need to file a TD9022 to report the RRSPs. Does this form exempt tax on the RRSPs? I moved…
Cross Border Tax Q&A – Can I roll my RRSPs to an IRA? Question Phil I’ll be moving to California permanently next January and I wanted to get your opinion on a tax matter. Will I be able to “roll over” my RRSPs to an IRA (before or after I leave) into an IRA tax…
Cross Border Tax Q&A – Deduction of RRSP Contributions on 1040 Return? Question Dear Sir I’m a US citizen (born in the US) living in Ottawa, Ontario Canada. I’ve prepared my own Canadian taxes and US taxes (1040 income tax returns) for the last 10 years including the filing of foreign tax credits on form…