Actively managing RRSPs after becoming a US resident

jsandhu
New Member



Joined: 17 Jul 2006
Posts: 1
Location: Colorado

Posted: Tue Jul 18, 2006 6:53 am

 

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Hello fellow expats. I moved to the US after working 12 years in Toronto. Now, I have good portion of my retirement savings in RRSPs in Canada as well as in 401Ks in the US. I have not found a Canadian company that has staff licensed to actively manage RRSP funds for a US resident. The RRSPs remain in the accounts and investments they were in 10 years ago, because no-one can change them for me. Some are in a company locked in plan, some are in individual RRSPs that my wife and I bought on our own. I'm sure almost every expat has this problem! What is the best way to actively manage RRSPs after moving to the US?
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ColoradanfromBC

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nishant
Junior Member



Joined: 05 Aug 2006
Posts: 13
Location: Ontario

Posted: Sat Aug 05, 2006 8:07 am

 

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RRSP should be maximized during the year before leaving Canada. After leaving, it does not offer any incentive to contribute RRSP assuming that you have no Canadian income and have severed ties and are away for minimum 24 months or more period.

If you want to withdraw, it attracts tax. However, you can minimize tax by withdrawing minimum of
1) 10 % of your RRSP balance
or
2)2 times minimum RRSP withdrawal allowed per year.
whichever is lower

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